If your Self-Managed Super Fund (SMSF) has ever borrowed to buy property or you’ve been weighing up whether to, there’s an important change you need to know about.
From 10 August 2026, self‑managed superannuation funds can only enter into a Limited Recourse Borrowing Arrangement (LRBA) to acquire real property where that property meets the definition of business real property.
These changes are prospective. Any existing residential or non‑business real property LRBAs entered into before 10 August 2026 are not required to be unwound.
If you are considering acquiring property within your SMSF and wish to explore an LRBA, please reach out so we can confirm whether the property meets the Business Real Property definition.
This definition is specific to SMSFs and requires careful assessment to ensure compliance.