Can an SMSF still borrow for commercial property after the 2026 ban?
Yes. The June 2026 law change (Treasury Laws Amendment Tax Reform No. 1 Act 2026) bans only new SMSF limited recourse borrowing arrangements for residential property. Commercial property LRBAs remain fully permitted, with maximum 70% LVR (80% via select lenders) and rates typically 7.50-9.00% p.a. in 2026.
SMSF Commercial Property Calculator
Model your SMSF commercial LRBA repayments and fund requirements
From mid-August 2026, new SMSF residential property LRBAs are banned. Commercial property LRBAs are fully unaffected and remain a key SMSF investment strategy. Read the full law change guide.
Offices, medical suites, warehouses, retail, industrial. GST may apply at settlement.
Total fund assets. Must comfortably cover the deposit, costs, and a liquidity buffer.
Expected annual rent from tenants. We calculate the gross yield and self-funding gap.
Most SMSF commercial lenders cap at 70% LVR. Some allow 80% for lower-risk properties.
SMSF commercial lending rates typically range 7.50% to 9.00% (June 2026). Residential rates do not apply.
Enter a purchase price to get started
Results update in real time as you fill in each field.
This calculator is for SMSF commercial limited recourse borrowing arrangements (LRBAs) only. From mid-August 2026, new residential LRBAs inside SMSFs are no longer permitted under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. Stamp duty estimates are approximate. Speak with a licensed SMSF adviser and our brokers for a personalised commercial LRBA assessment.
Frequently Asked Questions
Can an SMSF still borrow to buy commercial property in 2026?
Yes. The June 2026 ban on SMSF limited recourse borrowing arrangements (LRBAs) applies only to residential property. Commercial property LRBAs are completely unaffected. SMSFs can still borrow up to 70% LVR (or 80% via select lenders) to purchase offices, warehouses, retail premises, medical suites, and other business real property.
What LVR can an SMSF borrow to for commercial property?
Most SMSF commercial lenders allow a maximum of 70% LVR. Some specialist non-bank lenders extend to 80% LVR for lower-risk commercial property types such as strata offices, medical centres, and metro retail. Higher LVRs generally require stronger fund balance and rental income coverage.
What interest rates apply to SMSF commercial property loans?
SMSF commercial lending rates are higher than standard residential rates. In June 2026, SMSF commercial LRBA rates typically range from 7.50% to 9.00% per annum depending on the lender, property type, LVR, and fund profile. These rates are assessed with a 3% APRA serviceability buffer, meaning the fund must demonstrate capacity to service at the assessment rate.
How much does an SMSF need in its fund to buy commercial property?
The fund must have sufficient balance to cover the required deposit (typically 20-30% of the property price), stamp duty and transaction costs (approximately 5-6% depending on state), and a liquidity buffer (lenders typically require at least 10% of the loan amount to remain in the fund post-settlement). For a $1 million commercial property at 70% LVR, the fund would need approximately $350,000 to $400,000 available in liquid assets.
Can an SMSF use a commercial property LRBA to buy the member's own business premises?
Yes. Business real property (commercial premises used wholly and exclusively in a business) is one of the specific exceptions to the related party acquisition rules. A self-employed member can purchase their own business premises through their SMSF using an LRBA and lease it back to the business at market rent. This is a common and well-established SMSF strategy that is not affected by the 2026 residential borrowing ban.
What tax advantages does an SMSF get on commercial property?
Within an SMSF in accumulation phase, interest on the LRBA is tax-deductible at the 15% super tax rate, rental income is taxed at 15%, and capital gains on properties held more than 12 months are taxed at 10%. In pension phase, all income and gains from assets supporting pension accounts are tax-free. This compares very favourably to personal ownership where income tax rates can reach 45% plus Medicare levy.