There are some important updates to Self Managed Super Fund (SMSF) property investment rules that every investor needs to know.
What’s changed?
From 10 August 2026, new residential property purchases through Limited Recourse Borrowing Arrangements (LRBAs) within SMSFs will be banned. This means SMSFs can no longer borrow to buy new residential properties. However, there are some key details to keep in mind:
- New residential LRBAs banned from 10 August 2026
You’ll need to have exchanged contracts before this date to secure existing rights to borrow for a residential property purchase. Existing LRBAs for residential properties and refinancing arrangements will be grandfathered. - Commercial property borrowings unaffected
SMSFs can still use borrowing arrangements to buy commercial property without restrictions. - Negative gearing rules don’t apply to SMSFs
Unlike individuals or trusts, SMSFs can continue to negatively gear residential properties, both new and established. - No changes to capital gains tax discounts
SMSFs keep their current one-third CGT discount, meaning capital gains tax rates remain at 10% (accumulation phase) or 0% (pension phase) for assets held over 12 months.
These changes reshape the landscape for SMSF property investors. It’s essential to review your investment strategy now and plan accordingly.
If you’re thinking about investing through your SMSF, or want clarity on how these rules might affect your existing property portfolio, we’re here to help.
Speak to your financial planner asap to ensure you’re ready to go while we’re finding the property to suit your investing strategy.
Let’s talk.
Reply to this email or book a consultation with me and together, we’ll find the smartest, safest way to grow your wealth.
Whenever you’re ready, we’re only a message, call or email away, and we have SMSF properties ready to settle.
With the deadline of 10th August, there’s no time to delay.
