Have Your Business Pay Rent to Your Own Super Fund. 100% Tax Compliant
As an Australian business owner, your superannuation shouldn't just sit in a retail industry fund earning generic stock market returns while you pay thousands of dollars in commercial rent to a third-party landlord every month.
Under Australian superannuation law (Section 67A of the SIS Act 1993), you can establish a Self-Managed Super Fund (SMSF) and use a Limited Recourse Borrowing Arrangement (LRBA) to purchase 'Business Real Property'—such as an industrial factory unit, trade shed, or commercial yard.
Your operating business then leases the premises from your SMSF, paying tax-deductible commercial rent directly into your super fund. Rental income inside an SMSF is taxed at just 15% (and 0% once in retirement pension phase), with zero personal liability against your family home.
Here is our strategy: We ask you a few quick questions about your situation, then match you directly with an accredited specialist who will fight for your approval, cut through bank red tape, and deliver your loan with zero stress. Get matched directly with an accredited specialist in 60 seconds via the Mortgage Matcher.
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| Feature | Traditional Commercial Purchase | SMSF LRBA Purchase |
|---|---|---|
| Funding Source | Personal Cash / Home Equity | Existing Superannuation Balance |
| Rental Income Tax Rate | Individual Marginal Rate (up to 47%) | 15% (0% in Pension Phase) |
| Capital Gains Tax Rate | Up to 24.5% (after discount) | 10% (0% in Pension Phase) |
| Asset Protection | Exposed to Business Creditors | 🛡️ 100% Protected inside Super |
1. How Section 67A SIS Act Rules Work for Tradies
Australian superannuation rules strictly prohibit SMSFs from buying residential property from related parties. However, an explicit statutory exemption exists for Business Real Property.
A self-employed tradie's SMSF can legally purchase an industrial shed or warehouse and lease it directly to the member's operating trade business, provided the lease is at standard market arm's-length terms.
2. SMSF Deposit & LVR Borrowing Parameters
SMSF commercial property loans typically require:
- 25% to 30% Deposit: Sourced from rollover balances from existing super accounts.
- 70% to 75% Max LVR: Borrowed from specialist SMSF commercial lenders.
- Liquidity Buffer: Typically 5% to 10% in liquid cash remaining inside the SMSF post-settlement.
3. Servicing the Loan via Lease Rent and Contributions
Mortgage servicing is calculated by combining market rent paid by your business with ongoing statutory employer super contributions made by fund members.
Wholesale alt-doc credit desks deliver fast 24-48 hour turnarounds, allowing tradies to secure formal pre-approvals without waiting for end-of-year tax returns.
Accredited Mortgage Specialists
Accredited credit representatives independently verified against the ASIC Professional Register. Governed by statutory Best Interests Duty (BID) with direct wholesale lender desk access.
David Chi Tran
Emerge Finance
Frequently Asked Questions: Buying a Tradie Workshop in an SMSF: LRBA Borrowing Guide
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