If you’ve been considering purchasing a residential investment property through your Self-Managed Super Fund (SMSF), there are some important changes you need to be aware of.
From 10th August 2026, new laws will change the way SMSFs can borrow to buy residential investment properties.
What’s changing?
Until now, some Australians have been able to borrow money through their SMSF to buy a residential investment property through a Limited Recourse Borrowing Arrangement (LRBA)
From 10th August 2026, LRBA’s will no longer be allowed, meaning SMSFs will no longer be able to borrow to buy residential investment properties.
The changes apply to future residential property borrowing through an SMSF and do not affect commercial property borrowing.
What if I already own property through my SMSF?
If you already own a residential investment property through your SMSF, the changes are not expected to affect your existing arrangement.
Existing SMSF residential property loans are expected to continue, and SMSF-owned residential properties do not have to be sold because of these changes.
What if I was planning to buy?
If purchasing a residential investment property through your SMSF was something you were considering, it’s important to discuss with an accountant and financial adviser specialising in SMSFs what options you now have.
From 10th August 2026, borrowing through an SMSF to buy a new residential investment property will generally no longer be available.
Every situation is different, so it’s important to seek professional advice before making any decisions.
What should you do next?
If you currently own property through your SMSF or were planning to buy in the future, it’s a good idea to speak with your accountant or licensed financial adviser who specialises in SMSFs to understand how these changes may affect you.
If you’re considering purchasing property or would like to better understand what these changes could mean for your lending options, our team at Bernie Lewis Home Loans is here to help.
Disclaimer
*General information only. This article is intended as general information and does not constitute financial, taxation or legal advice. SMSF lending is a specialised area, and you should seek advice from a qualified accountant and licensed financial adviser before making decisions about your SMSF. Lending criteria and eligibility apply.
