Self-Employed Australians Can Pay Rent to Their Own SMSF

How Self-Employed Australians Use SMSF Lending to Turn Business Rent Into Retirement Wealth

Kingsgrove, Australia – May 8, 2026 / Trelos Finance /

Trelos Finance, operating through the financial services platform onpg.com.au, has published new research identifying a significant awareness gap around SMSF property investing among Australians aged 18 to 30. The findings, released this month by mortgage broker Nick Lissikatos, show that most younger Australians do not know their superannuation can be used to fund direct property investment through a self-managed super fund – a gap that Lissikatos contends is depriving this demographic of years of compounding retirement growth.

Younger Australians Missing a Legal Wealth-Building Pathway

The research identifies a structural disconnect between rising property investment interest among younger Australians and their understanding of the mechanisms available under superannuation law. While SMSFs have historically been associated with older, higher-net-worth investors, Trelos Finance found that awareness among the 18-to-30 cohort remains limited, despite the strategy being legally available to any Australian with sufficient superannuation savings.

Fund fragmentation compounds the issue. Many younger workers accumulate multiple superannuation accounts across different employers, each attracting its own administration fees. Consolidating those accounts into a single SMSF creates a larger investable pool – one that may reach the balance threshold required to make buying property in super a financially viable path forward.

SMSF lending rates currently sit just 75 to 100 basis points above standard investment loans, a margin that has narrowed considerably as more lenders have entered the limited recourse borrowing arrangement market. That compression means the cost of SMSF lending is now more comparable to conventional investment lending than many prospective investors appreciate.

Self-Employed Owners Gain a Distinct Structural Advantage

Among the key findings, the research highlights a specific opportunity for self-employed Australians. Under ATO-compliant structures, a business owner can purchase commercial premises through an SMSF and pay rent directly back to the fund. This arrangement converts what would otherwise be a standard business operating expense into a tax-advantaged contribution toward personal retirement wealth.

Rent paid into the fund is taxed at the concessional superannuation rate of 15 percent during the accumulation phase, rather than at the individual’s marginal tax rate. For business owners in higher income brackets, the compounding difference across a decade or more can be substantial.

“Most self-employed clients we speak to have never been told they can buy their own business premises through super and pay rent back to their fund,” said Nick Lissikatos, Mortgage Broker at Trelos Finance. “When we model this out over 10 to 15 years, the tax savings alone can run into six figures – and that is before accounting for any capital growth on the property itself.”

Compliance Structures Are Non-Negotiable

Despite the accessibility of SMSF property investing, Trelos Finance makes clear that compliance requirements carry no flexibility. The ATO imposes strict rules governing how SMSF trustees can deal with fund assets. Residential property acquired through an SMSF cannot be occupied by the fund member or any related party, and it cannot be rented to family members – conditions that attract significant penalties if breached.

A properly structured SMSF property transaction requires a compliant trust deed, independent legal advice, and a limited recourse borrowing arrangement that ring-fences the loan against other fund assets. Trelos Finance coordinates this process end-to-end, engaging specialist SMSF solicitors, accountants, and lenders to ensure clients satisfy ATO requirements before any funds are committed.

The research further notes that the cost of non-compliance – including potential fund disqualification and forced asset liquidation – far exceeds the administrative cost of establishing a correctly structured arrangement from the outset.

Trelos Finance is currently working with a group of clients under 35 who are in the early stages of consolidating superannuation accounts ahead of entering the SMSF lending market, with several transactions expected to settle before the close of the current financial year.

About Trelos Finance

Trelos Finance is an Australian mortgage broking firm operating through onpg.com.au, specialising in residential and commercial lending, SMSF lending, and investment finance strategies. The firm works with individual investors, self-employed business owners, and wealth-building clients across Australia, coordinating lending, legal, and compliance specialists to deliver structured finance outcomes.

Learn more at Trelos Finance