Specialist legal support from Law by Design
When an SMSF owns commercial property, the lease is one of the most important compliance documents in the fund. The ATO requires every SMSF commercial property to be leased on genuine arm’s-length terms at all times — whether the tenant is a related party or a third party. Auditors also examine lease documentation as part of the annual audit.
Law by Design prepares commercial leases specifically designed for SMSF trustees (including arrangements where the SMSF is the beneficial owner via a bare trustee). The documents incorporate the provisions needed to demonstrate arm’s-length commercial terms and to satisfy the business real property and related-party rules under the SIS Act.
Who we work with
Heidi Warren of Law by Design assists SMSF trustees across Australia (all states and territories except the Northern Territory).
What is included in a new commercial lease
Professionally drafted commercial lease tailored to the SMSF structure
SMSF-specific clauses that document the arrangement on a genuine commercial, arm’s-length basis
For related-party leases: a plain-language trustee obligations summary covering the arm’s-length requirements
One round of negotiation (standard packages)
Any incentive deed or other ancillary document is quoted separately if required.
Indicative fixed fees (plus GST)
These are typical price points for straightforward single-tenancy leases. An exact fee is confirmed once the brief is received.
Lease type | Indicative fee |
Related-party lease (includes lease + trustee obligations summary) | $1,800 + GST |
Unrelated tenant – standard commercial lease | $1,800 + GST |
Retail lease (includes required disclosure documents) | $2,500 + GST |
Note: Queensland retail leases are generally more expensive than those in other states; the fee may reduce depending on the location of the property.
Why specialist SMSF lease drafting matters
Demonstrates arm’s-length terms to the ATO and the fund’s auditor
(You can obtain market lease appraisal with a valuation from Superfund Property Valuations)Reduces the risk of compliance issues, loss of tax concessions or penalties
Ensures rent review mechanisms, guarantees and other key provisions are effective and properly documented
Provides clear guidance for trustees on their ongoing obligations
How to get started
Simply contact Heidi Warren with the property details and the proposed tenancy arrangement (related or unrelated, commercial or retail). She will confirm the exact scope and fee before any work begins.
Heidi Warren
Director, Law by Design
Lv 9, 1 Corporate Court, Bundall QLD 4217
Phone: 0468 531 003
Email: [email protected]
Website: www.lawbydesign.com.au
This information is general only and does not constitute legal advice. Law by Design provides lease documentation services; it does not advise on whether a property acquisition is appropriate for an SMSF.