There is no single correct answer. A company, a trust and an SMSF each carry different tax treatment, asset protection and lending rules, and the best fit depends on your other assets, your long term plan and your appetite for compliance. This decision belongs with your accountant or SMSF specialist, not a property brochure.
Buyers looking at industrial stock in Truganina are usually weighing this up for the first time because the numbers have grown large enough to matter. A modern warehouse in this pocket sits at a price point where the structure you choose can genuinely change your after tax outcome and how easily you can pass the asset on later.
Getting this right before settlement matters more than getting it right after. Changing structures later can trigger stamp duty, capital gains tax and refinancing costs that a bit of planning upfront would have avoided entirely.
The cheapest time to sort out ownership structure is before you make an offer, not after you own the building.
Why Truganina Buyers Face This Question Early
Truganina has become one of the busiest pockets of the west for owner occupiers and investors buying mid sized warehouses and small factory units. Because stock here spans from smaller strata units to larger freestanding sheds, buyers arrive with very different goals. Some want a place to run their business from. Others want a long term rental asset inside super. Both paths lead straight to the structure conversation.
The Three Structures Explained Simply
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CompanyA company owns the asset in its own right, which can offer a flat and predictable tax rate on profits and a clear separation from your personal assets. It can be less flexible for distributing income and does not attract the capital gains tax discount available to individuals and some trusts.
2
Trust (discretionary or unit)A trust lets a trustee distribute income and gains to beneficiaries, which can offer flexibility around tax planning and succession. Trusts have their own rules around losses, land tax thresholds and who controls decisions, so the trust deed matters enormously.
3
SMSFA self managed super fund can hold industrial property, including a warehouse leased back to a related business under strict arm's length terms, but it comes with detailed borrowing, compliance and sole purpose rules set by the regulator.
What Actually Changes Depending on Structure
1
LendingBanks assess company, trust and SMSF borrowers differently, and SMSF lending in particular involves limited recourse borrowing arrangements with their own conditions.
2
Land taxLand tax thresholds and grouping rules can apply differently depending on whether the property sits in a trust, a company or a fund, and this affects your annual holding cost.
3
Asset protectionEach structure offers a different level of separation between the property and your personal or business risk.
4
SuccessionPassing the asset to family or beneficiaries later works very differently across a company, a trust and an SMSF, and this is worth thinking about even at purchase stage.
5
Exit costsSelling or restructuring later can trigger duty and tax consequences that vary significantly by structure, so it pays to think about the exit before you think about the entry.
The structure you choose on day one shapes what your exit looks like on the last day you own the property.
Common Mistakes Buyers Make
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Choosing a structure based on what a friend usedEvery buyer's tax position, other assets and goals are different, so someone else's structure is rarely the right template for yours.
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Deciding after the offer is acceptedStructure decisions made under contract deadline pressure often get rushed and cost more to unwind later.
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Ignoring the lease terms if buying via SMSFA related party lease inside an SMSF must be genuinely arm's length, and getting this wrong creates real compliance risk.
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Forgetting land tax groupingSome structures can inadvertently trigger higher land tax by being grouped with other landholdings you or your family control.
Common questions
1
**Can my SMSF buy a Truganina warehouse and lease it back to my own business?** Yes, this is a recognised structure known as a business real property arrangement, but it must meet strict arm's length and sole purpose rules set by the regulator, so speak to your SMSF specialist before proceeding.
2
**Is a trust always more tax effective than a company?** No, it depends on your income, other assets and long term goals, and only your accountant can model this properly for your circumstances.
3
**Can I change the ownership structure after I have already bought the warehouse?** Technically yes, but restructuring after settlement can trigger stamp duty and capital gains tax, so it is far cheaper to decide upfront.
4
**Does the structure affect how fast I can sell the warehouse later?** The physical sale process is the same, but the tax and compliance steps behind the scenes can add time and cost depending on how the property is held.
This guide is general information only and is not financial, tax or legal advice. Fairmont Property Group is a property agency, not a licensed financial adviser, and you should speak with your own accountant, financial adviser or SMSF specialist before deciding how to hold an industrial property.
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Manny Singh
Director (OIEC), Fairmont Property Group
Fairmont only sells and leases industrial property across Melbourne's western corridor and Geelong. That focus is deliberate. It means we know the buyers who are active right now and what they are prepared to pay.
