The 2026 SMSF borrowing change, explained for brokers
From 10 August 2026, new SMSF limited recourse borrowing for property can only acquire business real property. Residential is closed to new loans. The deal flow did not disappear. It moved, and brokers who understand where are already writing it.
- New LRBAs from 10 August 2026 can only be used to acquire business real property - broadly, property used wholly and exclusively in a business. This applies to every lender type, bank, non-bank and related party (Treasury Laws Amendment (Tax Reform No. 1) Act 2026; ATO guidance July 2026).
- Existing residential SMSF loans are grandfathered, and that grandfathering includes refinancing the same asset with the same or a new lender. Contracts exchanged before 10 August are protected even if settlement came later.
- Commercial zoning alone is not enough. Business real property is a use test, not a zoning label. Mixed-use needs care and proper advice.
- Listed shares and other permitted assets are untouched. This change is about property.
SMSF commercial purchases
Surveyed SMSF investors report strong intent to shift toward commercial property inside super. Business owners buying their own premises through an SMSF remain the classic, fully permitted structure.
Grandfathered refinances
Every existing residential SMSF loan in Australia can still refinance. Lenders moved within weeks of the change with streamlined SMSF refinance products. That is a large, motivated, fully legal market.
Advice discipline
Brokers arrange finance; SMSF strategy is advice territory. The brokers winning this niche work alongside accountants and advisers rather than around them.
Timing
Rule changes create searching, confused borrowers for a season. That season is now.
Our commercial deal flow catches borrowers responding to exactly this change, including SMSF-commercial scenarios and refinances of existing facilities, verified and sold exclusively to one broker.