SMSF · Super · Property
SMSF changes in 2026: what has already started, and what is still only proposed
There has been a lot of news about self-managed super funds (SMSFs) this year, and much of it has been confusing. Clients have been asking us: can an SMSF still buy property? Can I still set one up?
The short answer: most SMSFs that are already running are not affected. But it helps to separate two different things:
- A ban on SMSFs borrowing to buy residential property — this is already law and in effect.
- A package of new SMSF rules announced on 19 August — these are only proposals so far and still need to be legislated.
1. Already in effect: SMSFs can no longer borrow to buy residential property
| Date | What happened |
|---|---|
| 23 June | Labor and the Greens agreed to add the ban to the first tranche of tax reform legislation |
| 25 June | The bill passed Parliament |
| 26 June | Royal Assent |
| 10 August | The ban took effect |
Who is affected
From 10 August, an SMSF cannot enter into a new limited recourse borrowing arrangement (LRBA) to buy residential property. An LRBA is the special loan structure an SMSF uses to borrow to buy an asset. The ban applies whether the lender is a bank or a related party.
Who is not affected
- Existing residential LRBAs stay in place. Nobody has to sell.
- Refinancing for the same amount — including moving to another lender — is generally fine. Borrowing more or drawing out cash may be treated as a new loan.
- Contracts exchanged before 10 August are protected, even if settlement happens later.
- Business real property — land and buildings used wholly in a business — can still be bought with borrowed money.
- Buying residential property with cash already in the fund is still allowed.
In practice: families who were planning to use borrowing inside an SMSF to buy a residential investment property can no longer take that route, and will need to look at their overall plan again.
2. Announced but not yet law: the 19 August package
In a speech at the National Press Club, Assistant Treasurer and Minister for Financial Services Daniel Mulino announced a set of new SMSF measures:
- The ATO could block rollovers into an SMSF where there are reasonable grounds to suspect consumer harm, such as fraud or financial abuse. The ATO and ASIC would also share more data to spot unusual rollovers earlier.
- Basic knowledge for new trustees. Trustees of new SMSFs would need to complete basic training before registering, so they understand their responsibilities. The format and content haven’t been decided.
- Adviser and fee disclosure. New SMSFs would need to disclose any financial adviser involved in setting them up, and annual returns would need to show adviser fees deducted that year as a separate item.
- A higher ATO supervisory levy — the first increase since 2013, from $259 to $295, and payable when the fund is set up.
- A share of special CSLR levies. If a special levy is needed for the Compensation Scheme of Last Resort, SMSFs would contribute too. The government estimates no more than $20 per fund each time.
- Other set-up requirements: a written investment strategy and a separately identifiable bank account when a new fund is established.
These are announcements only. They still need to be legislated, and the details may change.
The government says the aim is to protect consumers and reduce the number of people being talked into an SMSF without understanding the responsibilities and risks.
What it means for you
- You already have an SMSF and it is running normally. The borrowing ban doesn’t affect existing loans, and most of the new measures are aimed at new funds. Keep an eye on the levy change.
- Your SMSF has a residential property loan and you want to refinance. Check that it is a like-for-like replacement for the same amount, so it isn’t treated as new borrowing.
- You are thinking about setting up an SMSF. SMSFs can still be set up and can still hold property. Whether one suits you is a personal financial decision — please speak to a licensed financial adviser before you decide.
Want to check your own fund? Download our free SMSF Trustee Checklist 2026–27.
In our view, your super, your business and your property plans work best as one plan rather than three separate files. If you’d like to understand how these changes affect your tax position or your business structure, book a free 15-minute call and we’ll look at it with you.
General information only, current as at October 2026. This article is not personal financial, tax or legal advice and does not take your circumstances into account. Some of the measures described are not yet law, and the final legislation may differ. Please speak to a licensed professional before making a decision.