From 10 August 2026, a self-managed super fund can only borrow to buy business real property, such as commercial premises used in a business. Residential investment property must be paid for outright from the fund. Citadel Agency helps SMSF trustees find compliant commercial property Australia wide, alongside licensed accountants, SMSF specialists and brokers.
See what your fund could buy under the rules that started on 10 August 2026.
SMSF figures: ATO SMSF quarterly statistical report, June 2026. Source
Schedule 5 of the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 added a new condition to section 67A of the Superannuation Industry (Supervision) Act 1993: a new borrowing over real property must be for business real property. It received Royal Assent on 26 June 2026 and started 45 days later. Read the Act
Business real property is land and buildings used wholly and exclusively in a business. Commercial zoning on its own is not enough: what counts is how the property is actually used. We confirm business real property status with your accountant and SMSF specialist before you commit.
Professional offices and suites leased to businesses.
Industrial units, storage and logistics premises.
Shopfronts and strip retail leased to trading businesses.
Clinics and consulting rooms used in a practice.
| Commercial (business real property) | Residential | |
|---|---|---|
| Can the SMSF borrow? | Yes, through an LRBA | No new loans |
| How it is paid for | Deposit plus an SMSF loan | Outright, from the fund’s balance |
| Lease to your own business or family | To your business, at market rent on arm’s length terms | No. Cannot be lived in or rented to members or relatives |
| With $200,000 in the fund (estimate) | About $571K to $667K | About $190K |
Estimates assume a 25% to 30% deposit plus about 5% costs for commercial, and about 5% costs for residential. General information only.
An SMSF is a private super fund regulated by the ATO. Trustees make every investment decision and must keep the fund compliant with superannuation law. Property must be bought and held solely to provide retirement benefits to members.
With an LRBA, the property is held in a separate bare trust, the SMSF is the beneficial owner, repayments come from the fund, and the lender’s rights are limited to that asset.
SMSF borrowing structures for commercial property, lender requirements and documentation, and conservative borrowing assessments.
Setup, investment strategy, business real property checks, ongoing compliance and reporting.
Finding SMSF-compliant commercial property Australia wide, checking the lease and tenant, and running growth versus yield numbers.
All lending, accounting and SMSF advice is provided by appropriately licensed professionals. This page is general information only and is not personal financial advice.
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The first step to building a successful portfolio is having the right advice and an experienced team on your side, and that's exactly what I got from Citadel.
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Only for business real property. From 10 August 2026, a new limited recourse borrowing arrangement (LRBA) over real property must be for business real property: property used wholly and exclusively in a business, such as commercial premises. Loans entered into before that date, and refinancing of them, continue.
Yes. An SMSF can buy commercial property such as offices, warehouses, industrial units, shops and medical or professional suites, as long as it fits the fund’s investment strategy. If the property is used wholly and exclusively in a business, the fund can also borrow to buy it through an LRBA.
Business real property can be leased to a related business, such as your own company, as long as the lease is at market rent and on arm’s length terms. Residential property cannot be lived in or rented to members or their relatives.
Yes, for new purchases. Since 10 August 2026 an SMSF cannot take out a new loan to buy ordinary residential investment property, so the fund must pay the full price and buying costs from its own balance.
An SMSF investment strategy defines how your super is invested to meet retirement goals. Australian law requires every SMSF to document, review, and follow this strategy.
Most SMSF trustees engage accountants or advisers. Citadel Agency works alongside trusted professionals to help Australian investors align compliant SMSF structures with long-term property investment strategies.
Breaching SMSF rules may trigger ATO penalties, fines, or trustee disqualification. Citadel Agency helps investors structure compliant SMSF property investments to reduce regulatory and financial risk.
Australians can access SMSF investments after reaching preservation age and meeting a condition of release, such as retirement or commencing an account-based super pension.
Setting up an SMSF involves creating a trust, appointing trustees, drafting an investment strategy, registering with the ATO, and opening compliant bank and brokerage accounts.
Australian SMSFs must complete an independent audit every financial year. Citadel Agency ensures investment structures support smooth audits and ongoing ATO compliance.
Strategy, sourcing, checks and negotiation from start to settlement.
Learn moreA second opinion on a property you have already found.
Learn moreStructure the loan and use your equity to buy.
Learn moreContract review and settlement for investors.
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