The Clock Is Ticking. This Window Will Not Open Again.
On 10 August 2026, the Australian Government will permanently close the door on new Limited Recourse Borrowing Arrangements (LRBAs) for residential property inside Self-Managed Super Funds. This is not a rumour or a proposal. The legislation received Royal Assent on 26 June 2026. It is law.
If you have ever considered using your SMSF to invest in residential property, you have one final chance. And that chance expires in weeks.
What Is Actually Changing
From 10 August 2026, SMSFs will no longer be permitted to take out new loans to purchase residential property. The strategy that has helped thousands of Australians build wealth inside their super will simply no longer be available for new residential acquisitions.
Here is the critical detail most people miss: the deadline is not settlement. It is exchange of contracts.
If you exchange contracts on a residential property before 10 August 2026, your purchase is grandfathered under the existing rules, even if settlement occurs months later. That means the clock is not just ticking, it is almost out of time.
What is not changing:
- Existing SMSF loans continue completely unaffected
- Commercial property borrowing inside an SMSF remains fully permitted
- SMSFs can still purchase residential property outright, without borrowing