SMSF property lending has changed.
Residential borrowing is restricted. Commercial pathways remain.
New residential property borrowing through an SMSF is generally no longer available from 10 August 2026. Existing arrangements, qualifying pre-cutoff contracts, refinances and eligible business real property need to be considered separately.
The date and the documents now matter.
The new rules apply to arrangements entered into on or after 10 August 2026. The position depends on the property, its use and the binding documents already in place.
New residential borrowing
New LRBAs generally cannot be used to acquire residential property from 10 August 2026.
Contracts signed before the cutoff
A binding contract entered into before 10 August 2026 may remain protected, including where settlement occurs later. The actual contract and surrounding documents must be reviewed.
Existing residential LRBAs
Existing arrangements can generally continue. Refinancing the same residential property may also remain available, subject to the transitional rules and lender policy.
Buying without borrowing
The change restricts new residential LRBAs; it does not prevent an SMSF from acquiring residential property entirely with fund cash where the wider superannuation rules are satisfied.
Commercial property and structure need a closer look.
SMSF property finance has not disappeared, but the available pathway now depends heavily on whether the property qualifies as business real property and how the transaction is structured.
Eligible business real property
An SMSF may still use an LRBA to acquire property that meets the legal definition of business real property. Actual use is important; a commercial label or zoning alone does not decide eligibility.
LRBA and holding trust structure
A commercial-property LRBA commonly uses a separate holding trustee or custodian while the borrowing remains in place. The fund, trustee and purchaser details need to be established correctly before signing.
Other trust or co-investment structures
Other structures may be available for some commercial transactions, but control, related-party, in-house asset, tax and lending consequences need specialist assessment before proceeding.
Existing residential refinance
A qualifying existing residential LRBA may be refinanced for the same property. Additional borrowing or a material change in purpose may be treated differently.
Sources and review: Current law and industry guidance reviewed 1 September 2026.
Treasury Laws Amendment (Tax Reform No. 1) Act 2026, Schedule 5 · MFAA guidance issued 11 August 2026
The right SMSF property pathway depends on your documents and structure.
Clients can outline whether they are considering residential or commercial property, whether a contract was signed before 10 August 2026, and what structure is already in place. Bharat Finance can explain relevant lending pathways and coordinate with licensed legal, tax and financial advisers.