SMSF Borrowing to Buy Residential Property Is Ending: What You Need to Know Before August

The Federal Government’s Tax Reform No. 1 Bill passed both Houses of Parliament on 25 June 2026.

It now only needs Royal Assent to become law. That’s a procedural step, not a debate. It typically takes around 7 to 10 working days after a bill clears Parliament.

Once Royal Assent is granted, there’s a 45-day transition period. After that, SMSFs can no longer use a limited recourse borrowing arrangement (LRBA) to purchase residential property.

Based on that timeline, the practical deadline is likely somewhere around mid to late August 2026. The exact date won’t be confirmed until Royal Assent is received.

A few things worth knowing

If your SMSF loan or purchase was already properly underway before the commencement date, it’s intended to be protected. SMSFs can still buy residential property using available cash. The change is specifically about borrowing to buy.

If you’re mid-process or considering this, talk to your SMSF lender or adviser now.

Our take

Since the budget was released, a lot of buyers’ agents have been pitching SMSF as a window of opportunity. We understand why, the structure is attractive, and the deadline creates urgency.

But we’ve never encouraged it. Not because of the rules, but because superannuation exists to fund retirement, not to give people another borrowing vehicle for residential property. The government closing this window wasn’t a surprise to us. It felt overdue.

Our job has always been to help people make a clear property decision, understanding how to buy, why to buy, and just as importantly, why not to.

This email contains general information only and does not constitute financial, legal or investment advice. Past performance is not a guarantee of future results. Always seek advice from qualified professionals before making investment decisions.

If you’re weighing up how this affects your own strategy, book a free strategy call with our team.