Is a mining lease a business real property?

 Author: JayATO(Community Support)Community Support

27 Apr 2026

Hi @1357,

A mining lease can be business real property if it meets specific requirements. Business real property generally means land and buildings used wholly and exclusively in a business. A lease of property, including a mining lease, can qualify as business real property for superannuation purposes if the lease itself is used wholly and exclusively in a business.

The key test is whether the mining lease is used wholly and exclusively in a business. If your SMSF holds a mining lease and the lease is used entirely for business purposes (such as mining operations), it can meet the definition of business real property. This means it would be an exception to the in-house asset and related party acquisition rules that normally apply to SMSFs.

When we assess whether property meets the definition of business real property, we look at several factors, including:

• the legal ownership of the interest in the real property and the form of that ownership (such as lease or freehold)
• business activities that occur on the property or in a location of which the property is a part
• any private or non-business use on the property, including the degree of non-business use, purpose and frequency.

If you need a determination about whether your specific mining lease qualifies as business real property, you can request SMSF specific advice from us by providing details about the lease, the business activities conducted, and any non-business use.

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