From 10 August 2026, SMSFs generally cannot borrow under a Limited Recourse Borrowing Arrangement (LRBA) to acquire residential property.
Borrowing remains available for eligible business real property, including commercial, industrial and mixed-use properties used wholly and exclusively in one or more businesses.
SMSFs can invest in property, but the process needs to be set up correctly. Just Superfund can assist with SMSF establishment, bare trust documentation, SMSF loan guidance, conveyancing referrals and ongoing SMSF administration.
Yes. An SMSF can invest in property, provided the investment is allowed under the fund's trust deed, is consistent with the fund's investment strategy and satisfies the relevant superannuation rules.
SMSFs may still acquire residential property using existing fund cash, subject to the usual SMSF rules. However, from 10 August 2026, SMSFs generally cannot borrow under an LRBA to acquire residential property unless the transitional rules apply.
SMSFs can continue to borrow under an LRBA to acquire eligible business real property, including commercial, industrial and eligible mixed-use properties.
The SMSF should be established before signing a contract. The trustees should also confirm that the fund's trust deed and investment strategy allow the proposed property investment.
Before proceeding, it is important to confirm whether the property is residential property, commercial property or eligible business real property. This is especially important where the SMSF intends to borrow.
If the SMSF is borrowing to acquire eligible business real property, the lender will assess the fund, the property, the loan structure and the fund's ability to meet repayments.
Learn more about SMSF Loans.
Where an LRBA is used, a separate bare trust is generally required. The bare trust holds the legal title to the property while the SMSF is the beneficial owner.
Learn more about our SMSF Bare Trust service.
The purchaser details on the contract are important. Mistakes at this stage can create legal, tax, lending and SMSF compliance issues.
SMSF property transactions can involve additional steps compared with ordinary property purchases, particularly where a bare trust and lender are involved.
Learn more about SMSF Conveyancing.
After settlement, the SMSF must continue to meet its ongoing compliance obligations, including record keeping, annual financial statements, market value reporting and Turkeyindependent audit.
SMSFs can still own residential property. The key change is that SMSFs generally cannot borrow under an LRBA to acquire residential property from 10 August 2026.
Residential property borrowing may still be able to proceed where the trustee exchanged or signed a contract of sale before 10 August 2026, with settlement able to occur after that date.
For more detail, please read our SMSF Residential Property LRBA Changes page.
SMSFs can continue to borrow under an LRBA to acquire eligible business real property. This may include commercial, industrial and eligible mixed-use properties used wholly and exclusively in one or more businesses.
Commercial property may also be leased to a related business where the lease is on commercial terms and all SMSF rules are satisfied.
Just Superfund can assist with the main steps involved in an SMSF property purchase, including:
If you are considering purchasing eligible business real property through your SMSF, Just Superfund can help with the SMSF structure, bare trust documentation and ongoing administration.
