Using your SMSF to own your business premises can turn rent into retirement wealth — delivering tax advantages, asset protection, and long-term financial security.
Why More Business Owners Are Using Their SMSF to Own Business Real Property
More Australian business owners are discovering the benefits of using their SMSF to buy their business real property — and having their business rent it back. Done correctly, it’s one of the most effective ways to turn an ongoing business cost into long-term wealth.
1. Turn Rent Into Retirement Savings
Instead of paying rent to a landlord, your business pays rent to your SMSF.
- Rent is tax-deductible to the business
- The SMSF pays only 15% tax on rental income (or 0% in pension phase)
It’s a simple way to build retirement savings using money your business would spend anyway.
2. Protect the Property From Business Risks
The property sits inside your SMSF, not your trading entity.
This separates your main wealth asset from business risks such as creditors or legal claims.
3. Stability and Control Over Your Premises
When your SMSF owns the property:
- No surprise rent hikes
- No risk of being forced to move
- Long-term certainty for your business operations
4. Tax Advantages and Potential Capital Growth
Owning commercial property inside super means:
- Concessional tax on rent
- Reduced CGT after 12 months
- 0% tax on capital gains when the fund is in pension phase
This can significantly outperform holding the property personally.
5. Ability to Borrow to Buy the Property
Using a Limited Recourse Borrowing Arrangement (LRBA), your SMSF can borrow to purchase the premises.
Your business’s rent helps cover the loan — while the property grows in a low-tax environment.
6. A Compliant, ATO-Approved Strategy
You must pay market rent, have a formal lease, and pay on time.
These rules keep the strategy clean and protect your retirement savings.
The Bottom Line
Using your SMSF to own your business premises can:
✔ Reduce tax
✔ Build long-term wealth
✔ Protect the property from business risk
✔ Provide stability for your business
✔ Deliver strong retirement income
If you would like further details in relation to owning property in your SMSF for your business, please contact our office on (02) 4601-1000 or email us at This email address is being protected from spambots. You need JavaScript enabled to view it..
