Published 9 October 2026. Figures and market conditions described here were current at that time and may have changed since.
From 10 August 2026, the rules for self-managed super funds (SMSFs) that borrow to buy property changed. If you were planning to buy a residential investment property through your SMSF with a loan, this matters. If your SMSF already has a loan, or you're looking at commercial property, the door is still open.
What changed on 10 August 2026
SMSFs borrow through a limited recourse borrowing arrangement (LRBA). Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which received Royal Assent on 26 June 2026, a new LRBA entered into on or after 10 August 2026 can only be used to buy real property if it is business real property. In practice, that generally means property used wholly and exclusively in a business, such as a shop, office, warehouse or factory.
That means an SMSF can no longer take out a new loan to buy a residential investment property, such as a house or apartment.
What hasn't changed
- Existing SMSF loans are unaffected. LRBAs entered into before 10 August 2026 continue under the previous rules.
- Refinancing an existing SMSF loan is still possible. The ATO has confirmed refinancing of LRBAs entered into before 10 August 2026 is unaffected, so you can still look for a better rate or lender.
- Contracts already signed are protected. Binding contracts exchanged before 10 August 2026 are unaffected, even if the purchase settles later.
- Commercial SMSF lending continues. SMSFs can still borrow to buy business real property, including premises your own business leases from the fund at market rent.
What this means for you
If your SMSF already owns a residential property with a loan: your loan keeps running as normal. If your rate is uncompetitive, refinancing to another SMSF lender may still be an option. Talk to us before you change anything, because the details of how a refinance is structured matter.
If you were planning to buy a residential property in your SMSF: a new SMSF loan can no longer be used for this. Speak with your SMSF accountant or licensed financial adviser about your options, and talk to us about lending in your own name, a family trust or a company if that suits your strategy.
If your business wants to buy its premises through your SMSF: commercial SMSF loans are still available from specialist lenders. Expect lower maximum LVRs than a home loan, a requirement for the fund to hold a liquidity buffer, and a separate bare trust (holding trust) structure.
Get the right advice first
SMSF borrowing involves superannuation, tax and lending rules. We are mortgage brokers, so we can compare SMSF lenders, rates and structures for business real property and refinances. For advice on whether an SMSF strategy suits you, speak with your SMSF accountant or a licensed financial adviser. The ATO's guidance on the changes to limited recourse borrowing arrangements is the authoritative source.
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