Recent changes to SMSF borrowing may lead more clients to consider commercial property as part of their investment strategy.
From 10 August 2026, new limited recourse borrowing arrangements (LRBAs) can no longer be used to purchase residential investment property through an SMSF. Existing SMSF Residential Loans can still be refinanced, while commercial property remains an option for new purchases.
In a recent MA Money webinar, Craig Stuart, Head of Commercial at MA Money, and Katie McNamara, NSW Business Development Manager, explored what this shift means for brokers and shared practical insights into SMSF Commercial Lending, LRBA structures, serviceability and the application process.
An opportunity with commercial property
Even before the residential lending changes, the webinar highlighted growing interest in commercial property, with factors such as rental yields, longer lease terms and different property price points attracting investors.
With new residential purchases under an LRBA no longer available, understanding SMSF Commercial Lending could become increasingly valuable for brokers working with clients exploring property investment through their fund.
Commercial property can include retail shops, strata offices, warehouses, factories, light industrial property, storage units and some commercial vacant land.
There can also be opportunities for business owners looking to purchase the commercial premises they operate from through their SMSF.
Understanding SMSF Commercial Lending
SMSF Lending allows a self-managed super fund to borrow through an LRBA. Under this structure, the property is held in a separate bare trust on behalf of the SMSF. The lender’s recourse is limited to the property being purchased, while the other SMSF assets sit separately. There are several parties involved, including the SMSF, bare trust, trustees and guarantors, so getting the structure right from the start is important.
Brokers are not there to advise clients on whether an SMSF is right for them. Instead, they can work alongside the client’s accountant or financial planner and focus on the lending side of the transaction.
Where commercial property can fit
The webinar covered a range of commercial properties, including retail shops, strata offices, warehouses, factories, light industrial property, storage units and some commercial vacant land. There can also be opportunities for business owners who want to purchase the premises they operate from through their SMSF.
One scenario discussed involved a Victorian real estate business that had been renting its premises and wanted to purchase the property through its SMSF. The transaction brought together the property, lease arrangements, super contributions and servicing position.
Contributions and serviceability
Super contributions can play an important role in SMSF Commercial serviceability.
The webinar covered concessional and non-concessional contributions, along with situations where a client intends to increase future contributions. In some cases, supporting information from an accountant or financial planner may be needed where future contributions form part of the servicing position.
Rental income can also be important. Where a commercial property is tenanted, the lease and rental arrangements form part of the assessment. If the client’s own business will occupy the property, the lease should reflect appropriate commercial terms and market rent.
Preparing an SMSF application
Depending on the scenario, brokers may need to provide information relating to:
- the SMSF and its trustees
- the bare trust
- SMSF members and guarantors
- fund history and contributions
- member income
- lease and rental arrangements.
The requirements can differ depending on whether the SMSF is new or established, so preparing the right documents early can help keep the application moving.
The commercial property also matters
The webinar also highlighted the importance of the property itself. Craig explained that factors such as location, use, fit-out, resale market and potential alternative uses can all form part of the assessment.
This can be particularly important for more specialised commercial properties, where the lender needs to understand how easily the asset could be repurposed or sold.
Where brokers can add value
SMSF Commercial Lending can involve more complexity, but brokers do not need to manage every part of the transaction themselves. By working closely with the client, their accountant or financial planner and the lender, brokers can help make the finance side of the process easier to navigate.
Understanding the structure, serviceability, lease arrangements and documentation requirements can also make it easier to identify suitable scenarios and prepare stronger applications.
Want to learn more?
Watch the full webinar with Craig Stuart and Katie McNamara for a practical walkthrough of SMSF Commercial Lending, LRBA structures, serviceability, commercial property and application requirements.
The webinar also includes real scenarios and answers to common broker questions.
Watch the webinar to learn more about SMSF Commercial Lending and how these transactions can work in practice.
