SMSF residential borrowing restrictions to take effect from 10 August 2026

Following the Budget legislation being passed on 26 June 2026, the restriction on SMSF borrowing for non-‘business real property’ (ie. residential property, generally speaking) comes into effect on 10 August 2026.

SMSF borrowers have until 9 August 2026 to enter into a contract for sale to purchase residential property. The last business day to transact in this regard is Friday, 7 August 2026.

Any SMSFs looking to finance a residential purchase should take prompt action with their lender/broker, accountant and if applicable, financial advisor, to confirm and enact the structure and funding required to be able to make their intended purchase.

From 10 August 2026, SMSFs can still acquire residential property (but must use their own cash) and SMSFs can borrow to purchase ‘business real property’.