Australians considering purchasing residential property through a Self-Managed Super Fund loan need to understand an important change beginning on Monday 10 August 2026.

From this date, an SMSF will generally no longer be able to enter into a new Limited Recourse Borrowing Arrangement to purchase residential property. Buyers intending to use this type of finance will need to have a qualifying binding property contract signed and exchanged by Sunday 9 August 2026.

The key event is contract exchange, not settlement. A qualifying contract exchanged by the deadline may remain covered even when settlement occurs later.

What is an SMSF?

A Self-Managed Super Fund, known as an SMSF, is a private superannuation fund managed by its members.

SMSF trustees control the fund’s investment decisions, but they are also responsible for ensuring those decisions comply with Australian superannuation and taxation rules. Because these responsibilities can be complex, buyers should obtain independent financial, accounting and legal advice before purchasing property through an SMSF.

What is an LRBA?

A Limited Recourse Borrowing Arrangement, known as an LRBA, is a specialised loan structure that allows an SMSF to borrow money to acquire an asset such as property.

The property is generally held through a separate holding trust while the loan is repaid. This structure differs from a standard personal home loan and may require specialist lending, legal and trust arrangements.

What changes from 10 August 2026?

From Monday 10 August 2026, new residential property LRBAs will generally no longer be available.

This does not mean SMSFs will be unable to own residential property. An SMSF may still be able to purchase residential property outright using available cash.

Borrowing may also remain available for eligible business real property such as qualifying commercial premises. Existing eligible residential LRBAs established before the change may remain protected under the transitional arrangements.

Why contract exchange matters

For buyers hoping to complete a residential property purchase using a new SMSF LRBA the critical step is exchanging a qualifying binding contract by Sunday 9 August 2026.

Settlement does not need to occur by this date.

However, simply finding a property, submitting an enquiry, making an offer or beginning a finance application may not be sufficient. Buyers should ask their solicitor to confirm when their contract becomes legally binding and exchanged.

Key dates

What remains available?

Eligible residential LRBAs established before 10 August 2026 may remain protected. Refinancing may also remain available for qualifying grandfathered arrangements subject to the applicable requirements.

SMSFs may still be able to purchase residential property using available cash rather than borrowed funds.

Borrowing for eligible business real property may also continue. However, each option must comply with the fund’s investment strategy and broader SMSF obligations.

Explore current opportunities with Norus Projects

Once buyers have confirmed the suitability and feasibility of their proposed SMSF purchase with their professional advisers, they can speak with the Norus Projects team about current Melbourne residential opportunities and possible contract timing.

Current Norus Projects include:

• Beach Point Sandringham, completed bayside apartments ready to inspect
• Sanctuary Sandringham, completed apartments and townhouses
• Parkview Burwood, apartments currently under construction
• Riverbend Ivanhoe, thoughtfully designed residences with construction underway

Property availability and contract timing should be confirmed directly with the Norus Projects team.

Norus Projects does not provide financial, taxation, legal or credit advice. It cannot approve finance, establish an SMSF or trust structure or guarantee that a contract can be exchanged before the deadline.

Before taking the next step

New residential SMSF borrowing arrangements change from Monday 10 August 2026. For buyers intending to use a new SMSF LRBA, the relevant deadline is the exchange of a qualifying binding contract by Sunday 9 August 2026.

Buyers who already have a purchase underway should speak promptly with their financial adviser, accountant, solicitor, lender or SMSF specialist.

Once suitability and feasibility have been confirmed, contact Norus Projects to discuss currently available residential opportunities and contract timing.

Disclaimer:

This article contains general information only and does not constitute financial, taxation, legal, credit or investment advice. SMSF and property rules are complex and eligibility will depend on individual circumstances.

Readers should obtain independent professional advice before acting. Finance approval, trust establishment, property availability and contract timing cannot be guaranteed.

All information should be checked against current government guidance and reviewed by appropriately qualified advisers before publication

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