Moving your business premises into your SMSF (in-specie contribution)

Last updated 6 November 2026 · Reviewed by 360 MMS Compliance

What is an in-specie contribution?

An in-specie contribution is a contribution to your super fund made with an asset rather than money. With a cash contribution, you pay money into the fund. With an in-specie contribution, you transfer an asset, or your interest in it, and its market value is what counts as the contribution.

In this guide, the asset is your business premises. The fund buys the premises from you, and instead of the fund paying you the full price in cash, part of your equity in the premises goes into the fund as your contribution. Business owners look at this when they want premises they already own to sit in their retirement savings, with their business staying on as a tenant of the fund. Whether it suits you depends on your fund, your caps and your wider situation, which is a question for your licensed adviser or SMSF specialist accountant.

Can an SMSF buy premises from a member?

As a general rule, an SMSF can't acquire assets from its members or other related parties. Business real property is one of the exceptions. In broad terms, that's land and buildings used wholly and exclusively in a business, such as the office, shop, warehouse or factory your business operates from. The price has to reflect market value.

Once the fund owns the premises, your business can generally lease them from the fund at market rent on normal commercial terms.

How does an in-specie contribution work, step by step?

When the purchase is funded partly by a loan, your equity in the premises becomes the deposit. With our SMSF loans, the steps are broadly:

1. Get advice, then talk to your broker or our team. Your licensed adviser or SMSF specialist accountant advises whether the fund should do it. Your broker can then explain how our SMSF loans work.
2. Put the structure in place. The fund needs a corporate trustee with a deed that permits borrowing, and a bare trustee company set up before the contract is signed.
3. Value the premises and sign the contract. An independent valuation sets the full market value, a licensed real estate agent acts for you as the vendor, and the bare trustee signs the contract.
4. The documents and the assessment. Your broker lodges the application with the in-specie documents listed below, and the fund, the security and the borrowers are assessed against lending criteria.
5. The offer. If the application is approved, the loan documents are issued, and members sign their guarantees after independent legal advice where relevant.
6. Settlement. The fund borrows part of the price and you contribute the rest of your equity in specie as the deposit. Any other money needed to complete must be cash already held in the fund.

What about contribution caps, stamp duty, CGT and GST?

Moving premises into super isn't only a lending question:

• Contribution caps: the in-specie contribution counts towards your caps. Your accountant or licensed adviser confirms which cap it falls under and that it fits within it.
• Stamp duty: the transfer can attract stamp duty. Your accountant or licensed adviser confirms what applies in your state.
• Capital gains tax: CGT can apply to the sale. Your accountant or licensed adviser confirms your position.
• GST: GST can also apply to the sale. Your accountant or licensed adviser confirms whether it does.

What documents are needed?

On top of the usual SMSF loan paperwork, an in-specie purchase needs:

• an independent valuation of the premises
• a letter from your accountant confirming the contribution is within your caps
• the settlement statement
• a contribution deed recording the in-specie contribution.

What structure does the fund need, and who guarantees the loan?

The fund must have a corporate trustee, and its trust deed must permit borrowing. The premises are held in a separate bare trust, with its own trustee company, until the loan is repaid. Our guide to SMSF commercial property loans explains the set-up order.

Members of the fund guarantee the loan, which means they could be personally liable if the fund doesn't repay. Independent legal advice applies for guarantors where relevant, before they sign.

What are the pros and cons of moving your premises into your SMSF?

Possible pros:

• Premises you already own can become an asset of your super fund.
• Your business can generally keep using the premises under a lease from the fund at market rent.
• Your equity in the premises can act as the deposit, instead of cash.

Possible cons:

• The contribution counts towards your contribution caps.
• Stamp duty, CGT and GST can apply to the transfer.
• Members guarantee the loan and could be personally liable if the fund doesn't repay.
• The structure, valuation and advice add cost and paperwork, and much of the fund's savings sits in one property.

How can 360 MMS help?

360 MMS is a mortgage manager. Its home and commercial loans are funded by wholesale institutional funders and arranged through accredited mortgage brokers or directly. For an in-specie purchase, we can help with:

• The loan: SMSF loans for the fund to buy business real property, including premises bought from a member at market value, with a licensed agent acting for the vendor and an independent valuation.
• Working together: we work with your SMSF accountant or licensed adviser and your broker.
• The structure: what we need to see before the contract is signed, namely a corporate trustee with a deed that permits borrowing, and a bare trustee company in place.
• The paperwork: the documents for an in-specie deal, as listed above.
• Refinancing: refinancing an existing SMSF commercial loan, subject to fund, security and borrower assessment.
• Getting started: apply through your accredited broker, or talk to our team directly.

Only a licensed financial adviser or SMSF specialist accountant can advise whether your fund should do this. Neither mortgage brokers nor our team give SMSF advice.

FAQs

Sources and further reading:ATO: Accepting contributions (in-specie contributions) · ATO: What are the SMSF investment restrictions? (related parties and business real property) · ATO: SMSF borrowing restrictions (limited recourse borrowing arrangements)

General information only. It doesn't take into account your objectives, financial situation or needs, and it isn't credit, tax or legal advice. All loans are subject to lending criteria, and fees and charges apply. Kuone Pty Ltd T/As 360 MMS (ABN 81 621 683 672), Australian Credit Licence 504193.