SMSF Loans for Commercial Property in Logan, QLD, The Business Owner's Guide
If you're a business owner in Logan, QLD and you're still renting your commercial premises, your SMSF may be able to buy them instead. The business pays rent to the fund, the fund builds equity, and the asset compounds inside a concessionally taxed structure rather than sitting on someone else's balance sheet.
It's a strategy that suits more business owners than realise it, particularly those running from the Meadowbrook health and education precinct or operating trade and professional premises across the wider Logan area. The lending mechanics are different from residential finance, and the rules that govern what your fund can and cannot do are strict, but the structure itself is well established.
Our team works with business owners and self-managed super fund trustees across Logan, QLD on the SMSF lending side of commercial property purchases, comparing across 60+ lenders to find the right fit for the fund's position.
Key takeaways
- SMSFs can no longer borrow to buy residential property, but commercial property LRBAs remain available.
- Your business can legally rent the property back from your fund at market rent.
- LVRs typically sit between 60% and 70% for commercial SMSF loans.
Can an SMSF buy commercial property in Logan, QLD?
Yes, an SMSF can purchase commercial property using a Limited Recourse Borrowing Arrangement, and that remains fully available following the law changes that took effect in August 2026. The ban introduced by the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 applies specifically to new residential property LRBAs, not to business real property. A commercial purchase, whether it's an office, a warehouse, a medical suite or a retail tenancy, sits entirely outside the restriction.
Source: Australian Taxation Office.
How does an SMSF commercial property loan actually work?
The structure is a Limited Recourse Borrowing Arrangement under the Superannuation Industry (Supervision) Act 1993. Your fund borrows to purchase an asset held in a bare trust. The lender's recourse on default is limited to that one asset, which is why the structure is called limited recourse. The SMSF trustees, not the fund members personally, are the effective borrowers, and the fund's other assets are protected if something goes wrong.
The business real property exception in the SIS Act is what makes the rent-back arrangement legal. Your business can lease the commercial property from your fund at market rent, paying into the fund as it would to any commercial landlord. The lease must be on genuine commercial terms, properly documented and evidenced, and the rent must reflect what an arm's-length tenant would pay.
Once the loan is repaid and the fund holds the property outright, the asset sits inside the fund's concessional tax environment. Rental income is taxed at 15% during the accumulation phase. If the fund moves to pension phase and sells the property, no capital gains tax applies at all.
What I keep seeing is business owners who've been renting their premises for a decade, haven't considered whether the fund could own it instead, and then discover the fund could have been building equity the whole time. The rent they were paying out was serviceable all along, it was just going to someone else.
Nevada Matthews · Mortgage Broker and Co-Owner, Cube Loans · Chat to Nevada →
What does an SMSF need to qualify for a commercial property loan?
Lenders assess the fund's position carefully, and the application is materially different from a personal commercial loan. Before approaching a lender, the fund will typically need to satisfy most of the following.
What lenders verify for an SMSF commercial loan:
- › Fund balance: most specialist lenders want to see a minimum of $200,000 to $300,000 in the fund before considering an LRBA, ensuring the fund can sustain contributions and costs.
- › Liquidity buffer: a post-settlement buffer of around 10% of the loan or 5% to 10% of asset value is typically required, so the fund isn't left cash-strapped after completion.
- › Ongoing contributions: the fund needs a credible income stream, usually through member contributions and the rental income from the property, to demonstrate it can meet repayments.
- › Trust deed and LRBA documentation: the fund's trust deed must permit borrowing, the bare trust must be correctly established, and all documentation must comply with SIS Act requirements.
- › Property type and tenancy: lenders assess the asset class, its location and the quality of the tenant, including where the tenant is the borrower's own business. A well-documented lease at market rent strengthens the application.
- › Sole purpose test compliance: the fund's SMSF accountant or administrator must confirm the property purchase satisfies the sole purpose test. A property that members or related parties use for personal benefit, ever, is non-compliant.
What does an SMSF commercial loan cost, and how much can the fund borrow?
LVRs for SMSF commercial property loans typically sit between 60% and 70%, which means a deposit of 30% to 40% of the purchase price is required from within the fund. That is materially higher than a standard residential loan, and it is the main reason the fund's balance matters so much at the outset. The lender also wants to see that the deposit doesn't exhaust the fund's liquidity.
Rental income from the property is generally assessed at 70% to 80% of gross rent. The fund's member contributions and any other income are assessed alongside it. SMSF commercial loans carry a rate premium over standard investment loans, typically around 1% to 2% higher, because the lender panel is specialist and second-tier rather than the major banks, who exited SMSF lending in 2018 and 2019.
The options worth weighing:
- › SMSF LRBA (commercial): 60%–70% LVR · specialist lender panel · limited recourse structure · asset held in bare trust
- › Personal commercial loan: up to 75%–80% LVR for owner-occupier · recourse to borrower personally · simpler documentation · held outside the fund
- › Cash purchase inside the fund: no LVR constraint · no lender required · requires sufficient fund balance · sole purpose test still applies
The SMSF structure carries more complexity at application but places the asset inside a lower-tax environment for the life of the loan. That trade-off is worth modelling with an SMSF accountant before committing to either path.
| Get in touch Need help with SMSF commercial property lending? We're a local team who understand how lenders actually assess your situation, not just your rate. We'll compare your options across 60+ lenders to find the right fit.
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How long does it take to settle an SMSF commercial property purchase?
Longer than a standard commercial loan, in almost every case. The SMSF lender panel is small and specialist, and the documentation requirements are more involved: the bare trust deed, the LRBA agreement, the fund's trust deed and compliance confirmation from the fund's accountant all need to be in order before a lender will issue formal approval.
A realistic timeline from initial inquiry to settlement is three to five months, depending on the lender, the fund's readiness and the complexity of the property. Funds that haven't previously held property often discover the trust deed needs updating, which adds time. If you're working to a contract date, start the process earlier than you think you need to.
When does buying commercial property inside an SMSF not make sense?
The structure works well when the fund has sufficient balance, the business has a stable long-term lease requirement, and the members are committed to holding the property inside the fund for the longer term. It doesn't work as well when any of those three things are uncertain.
If the fund's balance barely covers the required deposit and liquidity buffer, the fund will be illiquid after settlement and unable to absorb a vacancy period, a repair cost or a member contribution shortfall. That financial pressure inside a superannuation fund creates compliance risk as well as cash flow risk. Buying personally, or simply continuing to rent, is often the cleaner position until the fund is better capitalised.
The other situation where the SMSF path is the wrong one is where the business itself is in flux, whether that's a potential sale, a partnership change or a planned premises move. A lease between the business and the fund needs to hold up over time. A short or uncertain lease weakens the lender's assessment and creates complications if the business no longer needs the premises mid-loan.
Where I'd usually wait is when the fund's liquidity is tight after the deposit. A fund that can just afford to settle isn't a fund that's ready to borrow, because there's nothing left to absorb the first unexpected cost. Getting the balance to a more comfortable level first is nearly always the better outcome.
Nevada Matthews · Mortgage Broker and Co-Owner, Cube Loans · Chat to Nevada →
How to buy commercial property inside an SMSF in Logan, QLD, step by step
The process involves the fund, the lender, a specialist SMSF solicitor and your fund's accountant or administrator working in parallel. Getting all four aligned early is what keeps the timeline on track.
Step 1: Talk to us
We start by reviewing the fund's balance, its trust deed and the property you're considering, to work out whether the LRBA structure is viable and which specialist lenders are worth approaching.
Step 2: Prepare the fund and its documentation
Your SMSF accountant confirms the fund's compliance position, updates the trust deed if needed, and provides the documentation the lender requires, including the bare trust structure established by your solicitor.
Step 3: Submit the application and secure formal approval
We package the application with the fund's financials, the proposed lease terms and the property details, and submit to the lenders best suited to the fund's profile. Formal approval triggers the LRBA agreement.
Step 4: Execute the lease and settle
The bare trust takes title at settlement, the LRBA is executed, and the lease between your business and the fund becomes operative. Your business begins paying market rent directly into the fund.
What goes wrong when businesses try to buy commercial property inside an SMSF?
The compliance failures that delay or derail these applications:
- › Trust deed not updated: many older SMSFs were established before LRBA provisions were common. A deed that doesn't permit borrowing will stop the application at the lender's legal review, well after you've spent time and money on it.
- › Insufficient liquidity after deposit: arriving at settlement with no buffer is a compliance problem, not just a cash flow one. Lenders require evidence of the buffer before they'll settle, so a fund that's just meeting the deposit requirement often fails this test at the last stage.
- › Lease not on commercial terms: a below-market rent or an undocumented arrangement between the business and the fund is a sole purpose test failure. The ATO's position is that all dealings with related parties must be at arm's length, and a lease that doesn't stand up to that test creates a risk to the fund's compliance status.
- › Applying before the fund is ready: an application submitted before the bare trust is established, or before the accountant has signed off on compliance, creates a credit enquiry on the fund's record and often results in a decline that could have been avoided with two more weeks of preparation.
Frequently Asked Questions
Can my SMSF still borrow to buy residential property after August 2026?
No. New LRBAs to acquire residential property were banned from 10 August 2026 under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Existing residential LRBAs are fully grandfathered, and refinancing one is still permitted.
Can my SMSF buy the commercial premises my business already occupies?
Yes, provided the purchase is at market value and the subsequent lease is on genuine commercial terms. The business real property exception in the SIS Act specifically permits this arrangement, but every element of the transaction must be arm's-length.
Is an SMSF commercial loan better than buying the property personally?
For most established business owners, the SMSF path produces a lower long-term tax outcome because rental income and eventual capital gains are taxed at concessional super rates. The trade-off is a higher deposit requirement and more complex documentation at application.
What LVR can an SMSF get on a commercial property loan?
Typically 60% to 70%, meaning the fund needs a 30% to 40% deposit plus a liquidity buffer. LVRs for rural or specialist-use commercial properties sit lower, closer to 55% to 65%.
What happens to the property if the business closes or stops renting it?
The fund continues to own the property and can lease it to an unrelated tenant at market rent. The sole purpose test still applies, so members and related parties cannot use it personally. If the fund can no longer service the loan, the lender's recourse is limited to the property itself under the LRBA structure.
Should I use a mortgage broker or go directly to a lender for an SMSF commercial loan?
A mortgage broker, every time. The major banks don't offer SMSF lending, so the panel is specialist and second-tier lenders whose credit policies vary significantly. A broker who works with these lenders regularly knows which funds they'll accept and structures the application to match.
Your Next Steps
Buying commercial property inside your SMSF is one of the more durable strategies available to a business owner, but it requires the fund, the documentation and the lender all moving together. Getting the structure right at the start avoids the compliance and timing problems that delay these transactions.
If SMSF commercial property lending is on your horizon, the next step is simple. Get in touch with the Cube Loans team or call 1800 774 756. We'll work through where the fund stands across our 60+ lender panel.
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External Resources
Cube Loans, Loganholme and Logan, QLD, Cube Central Pty Ltd, Credit Representative 472851, authorised under Australian Credit Licence 517192, General information only - this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.
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