If you’ve been considering buying property through your Self Managed Super Fund (SMSF), this is your heads up.
A major change has just been legislated and it will directly impact how investors can use super to enter the property market.
👉 What’s changing?
The government is banning new SMSF borrowing (Limited Recourse Borrowing Arrangements – LRBAs) for residential property. This means:
• You will no longer be able to use a loan inside your SMSF to buy residential property
• Existing loans are unaffected (grandfathered)
• SMSFs can still purchase property — but only if they have the cash
• Borrowing for commercial property is still allowed
👉 When does it take effect?
The ban comes into force 45 days after Royal Assent — expected on 10th August 2026.
For many investors, this is a significant shift. SMSF lending has been one of the key ways to leverage super into property — and that door is now closing.
I’m already seeing investors bring plans forward to secure a property under the current rules before the deadline hits.
If you’ve been sitting on the fence, timing now matters more than ever.
đź“ž Call me at Mortgage Choice on 07 3366 8604 to discuss your options and whether you can act before the changes take effect.
The strategy isn’t gone — but the way you execute it is about to change.
