SMSF residential loans after 10 August 2026.

The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026 and took effect 45 days later, on 10 August 2026. It amended the Superannuation Industry (Supervision) Act so that a new limited recourse borrowing arrangement over real property is only permitted where the asset is business real property. Residential investment property does not qualify, so new SMSF residential borrowing has ended.

The change is not retrospective. A residential LRBA entered into before 10 August 2026 is grandfathered and continues on its existing terms. A fund that exchanged a binding contract before that date is protected even where settlement occurred afterwards. Refinancing an existing residential LRBA remains permitted, because the protection attaches to the arrangement rather than to the lender. And a fund with sufficient capital can still buy residential property outright, without borrowing.

Most residential SMSF loans on the books today were written years ago, often at pricing well above what the specialist panel now offers. Because refinancing is still permitted, the lending work on SMSF residential has shifted from purchases to reviews. We compare your current loan against the lenders still active in SMSF refinancing and, where it stacks up, manage the switch without disturbing the bare trust structure.

Lender rules vary more than most trustees expect. Refinance LVRs are commonly available up to 80%, and a small number of lenders go higher. Some lenders require no liquid assets after settlement, others want around 5% of the loan balance or several months' repayments held in cash or liquid assets, and most set a minimum fund balance, commonly between $150,000 and $250,000. Several will only lend to a fund with a corporate trustee. Expect to provide the SMSF trust deed, the bare trust deed, and the fund's most recent financial statements, tax return and audit report.

We do not sell SMSF products. We help structure the lending side once you and your financial adviser have decided what is right for the fund.