From www.smsfadviser.com: For an asset to qualify as business real property, it must pass the business use test, which evaluates the property’s connection to business use at the acquisition time.

The ATO prohibits trustees from altering properties post-acquisition merely to meet BRP qualifications, such changes must be substantive and enduring.

N holistic assessment of property use is required, however minor non-business uses may still allow designation as BRP if incidental to the primary business activities.