Since 10 August 2026, a self managed super fund can borrow only to buy business real property, such as an office, shop or warehouse used in a business; new borrowing for residential property is no longer allowed.
Only business real property, if the borrowing starts on or after 10 August 2026. The Treasury Laws Amendment (Tax Reform No.
1) Act 2026 limits a new limited recourse borrowing arrangement to business real property, such as an office, shop or warehouse used in a business; arrangements entered into before that date, their refinancing and contracts exchanged before it keep the old rules.
The property is held in a separate bare trust until the loan is repaid, and the lender can only claim that property if the fund defaults. Fewer lenders offer SMSF loans, deposits are larger, and the fund’s trustees carry the obligations, so the structure is set up with your accountant first.
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A fund’s residential property cannot be lived in or rented by you or a related party, and what can be done to it while the loan runs is tightly limited.
Residential property held by a fund generally cannot be lived in or rented by you or a related party, and the restrictions on what can be done to the property while it is under a limited recourse borrowing arrangement are tighter than most people expect: repairs and maintenance sit differently from improvements that change the character of the asset.
These are superannuation law obligations rather than lending conditions, they are enforced, and the Australian Taxation Office is the authority on them alongside your accountant.
There are rules about who can use the property and what can be done to it, and they are stricter than most people expect, particularly around related parties and improvements. These are superannuation law questions rather than lending questions.
That is a strategy question before a lending one: it turns on your retirement planning, your fund’s existing assets and your tax position, which are for your accountant or financial adviser. A broker can tell you what is fundable.
Whether it is appropriate is a conversation for your accountant or licensed financial adviser, and this page is not advice.
Only to buy business real property, for borrowing that starts on or after 10 August 2026. A complying fund borrows through a limited recourse borrowing arrangement, subject to superannuation law and the fund's own trust deed, but a new arrangement can no longer be used to buy residential property.
The fund can still buy residential property without borrowing, and arrangements entered into before 10 August 2026, their refinancing and contracts exchanged before that date keep the old rules. Whether yours can borrow, and whether it should, depends on the fund and your circumstances.
Generally no. Residential property owned by a fund cannot be lived in or rented by you or a related party, and the rules are strictly enforced; your accountant or adviser can confirm your position.
No, fewer than offer standard home loans, and their requirements differ considerably, so lender choice matters more here.
Usually, once set-up is counted: pricing and fees differ from standard residential lending, and the fund adds professional costs that a personal purchase does not.
No. Nothing on this site is financial or taxation advice. Whether an SMSF purchase suits your retirement strategy is a question for a licensed financial adviser and your accountant.
Official source for the rule on this page: ATO, changes to LRBAs for property from 10 August 2026. Superannuation rules change; the official pages are the final word. Checked against these sources on 14 October 2026.
If you are also weighing up an investment property in your own name, our investment loan FAQ answers the more general investor questions.
The structure is hard to unwind once it exists. A conversation first is cheaper than a correction later. Free, no credit check.
General information only. Whether any concession applies to your profession depends on current lender policy, your membership or registration status and your full circumstances. Policies change and are confirmed in assessment.
