From 10th August 2026, new borrowing arrangements for residential property through Self Manage Super Funds (SMSFs) are no longer permitted under the Federal Government’s latest legislative reforms. This change marks a major shift in how trustees can invest through their super.
Existing SMSF loans are under the Limited Recourse Borrowing Arrangements (LRBAs), and are expected to remain protected. Refinancing your existing residential SMSF loan to a better suited loan product is available and is subject to the lender’s policy and normal credit criteria.
Commercial properties currently under SMSF lending remains the same. The legislation DOES NOT prohibit borrowing for eligible commercial properties. This means that owners can continue to purchase business premises though their SMSF where appropriate.
As residential borrowing becomes more prohibitive through SMSF, commercial property purchases through SMSF may become more prevalent.
If you are thinking of investing via your Self Managed Super Fund, please discuss with your accountant, financial advisor and finance broker.
Paul specialises in seeking finance for SMSF’s and would be pleased to discuss the finance options available to you. Call him today.