From cgw.com.au: An SMSF can purchase real property from a related party only if the property qualifies as business real property, which must be used wholly and exclusively in a business.
The SMSF must pay market value for the property, ensuring proper documentation and compliance with duty and tax obligations, which may vary by location.
Clients should evaluate the implications, including potential strategies such as contributions or limited recourse borrowing to fund the purchase.