You can have your SMSF own the commercial property you operate your business from – market rental conditions should still apply

Interest would be deductible. Check out the article I recently wrote dealing with this very situation
http://www.ellingsenpartners.com.au/index.php?option=com_content&view=article&id=220:can-i-claim-the-interest&catid=1:articles&Itemid=155

small business concessions won't apply if it is not an "active asset" (i.e. used to operate business in an entity connected with you) for at least 50% of the time you own the property. 
How old are you? Do you receive employment income? Could super be any option?

Why not check out http://www.banklink.com.au

Whilst not exactly on topic, don't forget to ensure the structure of your SMSF and bare/property trust are correct before proceeding to contract. Over the last 6 months I have dealt with many lenders who all have different rules as to who they expect the trustee of your SMSF and bare/property trust to be.

Whilst not exactly on topic, don't forget to ensure the structure of your SMSF and bare/property trust are correct before proceeding to contract. Over the last 6 months I have dealt with many lenders who all have different rules as to who they expect the trustee of your SMSF and bare/property trust to be.