If you’re a small business owner in Melbourne, you’ve probably asked yourself at some point:
“Should I keep paying rent to someone else—or should I own the building myself?”
But here’s the twist: what if your superannuation fund could be the landlord?
Buying your business premises through a Self-Managed Super Fund (SMSF) is a powerful wealth-building strategy that combines business control, tax advantages, and retirement planning. But it’s also complex—and not right for everyone.
As independent financial planners, we’ve helped many business owners successfully use this strategy as part of their long-term financial and business succession plans.
What Does It Mean to Buy Property in Your SMSF?
A Self-Managed Super Fund can purchase commercial property—including your own business premises—and lease it back to your business at market rates.
This allows you to:
- Stop paying rent to an external landlord
- Direct rental payments into your super fund
- Potentially access concessional tax rates on rent and capital gains
- Own a retirement asset funded partly through business operations
- Start building and diversifying assets away from your business
Key Benefits of Owning Your Freehold in an SMSF
Tax-Effective Wealth Building
Rental income is taxed at concessional rates and selling the freehold at retirement may even be tax-free
Asset Protection
The property is owned by the SMSF, not the individual, adding a layer of protection in the event of legal action or business failure.
Stability for Your Business
No risk of lease termination, rent hikes from a third-party landlord, or property being sold out from under you.
Long-Term Control & Succession Planning
The property becomes part of your retirement strategy—and can be passed to the next generation via the fund structure.
Things to Be Aware Of
This strategy isn’t suitable for everyone. It comes with strict compliance obligations and requires coordination across financial, legal, and tax advice. Important considerations include:
❗ You can’t live in or use the property personally—it must be business-use only
❗ You must lease the property at arm’s length and pay market rent
❗ You’ll need liquidity in the fund (or consider SMSF borrowing, i.e. LRBA)
❗ Commercial property inside super is illiquid, which matters when drawing a pension later
That’s why this strategy needs to be part of a comprehensive financial plan.
How We Can Help
As independent, self-licensed financial planners in Melbourne, we specialise in guiding business owners through this process from start to finish, including:
- SMSF set-up and structuring
- SMSF loan (LRBA) strategy coordination
- Cashflow modelling to ensure sustainability
- Super contribution strategy to help fund the purchase
- Exit planning for retirement or business sale
We collaborate closely with your accountant, solicitor, and property broker to ensure everything aligns—legally and financially.
Is This Strategy Right for You?
This approach works best for business owners who:
- Own or are looking to purchase their premises
- Have accumulated super balances (or the ability to contribute)
- Want long-term control and tax-effective wealth creation
- Understand the rules and are willing to take professional advice
Get clear advice from an independent financial planner—not a property spruiker or product seller.
General Advice Disclaimer
The information contained on this website has been provided as general advice only. The contents have been prepared without taking account of your objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.