Commercial office property is one of the most accessible and strategically powerful SMSF investments available in 2026. SMSFs can still borrow to buy offices under a Limited Recourse Borrowing Arrangement, and the business real property exemption means SMSF members who run professional services businesses can purchase their own office premises through their fund — paying rent to themselves in the most tax-efficient structure available.
Why Office Property Works for SMSFs
- LRBA borrowing still available — not affected by the residential ban
- Gross yields of 5–7% for well-leased strata office space
- Business real property exemption applies — ideal for accountants, lawyers, medical professionals, and advisers
- Tenants typically pay outgoings on net leases
- Strata office titles from $300,000 make office investment accessible to smaller SMSFs
- Depreciation on fit-out and building creates additional tax deductions within the fund
The Business Premises Strategy — Pay Rent to Your Own Super Fund
This is one of the most powerful wealth-building strategies available to Australian small business owners and professionals. The structure works as follows:
- Your SMSF purchases your office premises using fund cash or an LRBA
- Your business leases the office from your SMSF at market rent
- Your business claims the rent as a tax deduction
- Your SMSF receives the rent as income taxed at 15% (or 0% in pension phase)
- Capital growth on the property accumulates within the concessionally taxed SMSF environment
- On sale in pension phase, capital gains tax is zero
SMSF Office Investment — Key Numbers
| Metric | Typical Range |
|---|---|
| Strata office entry price | $300,000 — $1,500,000 |
| Gross rental yield | 5.0% — 7.0% |
| Typical lease term | 2 — 5 years with options |
| LRBA LVR | 60% — 70% |
| Business real property exemption | Available |
Finding Off-Market Office Opportunities for SMSFs
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Frequently Asked Questions
Can an SMSF borrow to buy an office in 2026?
Yes. The 2026 residential borrowing ban does not apply to commercial office property. SMSF LRBAs for offices remain fully available.
Can I buy my own office through my SMSF?
Yes, under the business real property exemption. Your SMSF can purchase the office your business operates from and lease it back at market rent.
What types of offices suit SMSF investment?
Strata-titled offices in established suburban or CBD-fringe locations work best — they are accessible at lower price points, easier to lease, and deliver reliable income yields.
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