SMSF residential lending changes have now taken effect. What brokers and borrowers need to know.

From 10 August 2026, changes introduced under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 mean new SMSF borrowing arrangements for residential property are no longer permitted. Existing residential SMSF loans are grandfathered, refinancing remains available and borrowing for eligible business real property can continue.

With the changes now in effect, many brokers and borrowers are looking for clarity on what has changed, which transactions can still proceed and where SMSF lending remains available.

While residential SMSF lending has changed, SMSFs continue to play a role in a range of property and business scenarios. Commercial property remains an important part of the SMSF landscape, including situations where a business owner purchases business premises through an SMSF and leases the property back to the operating business. These types of arrangements remain permissible under the new rules, although borrowers should always seek their own legal, financial and accounting advice before making decisions.

ORDE has supported SMSF lending since day one and remains committed to helping brokers navigate the changes for their clients. We continue to support the refinancing of existing residential SMSF loans and lending for eligible business real property.

If you have questions about a scenario you're working through, speak with your BDM or our One Lending Team.

FAQs around SMSF changes

To help explain the changes, we've answered some of the most common questions we're hearing following the introduction of the new rules.

Can I still buy a residential property through my SMSF?

For new SMSF borrowing arrangements entered into from 10 August 2026, the answer is generally no. The changes mean SMSFs can no longer use a new loan to purchase a residential property. Existing arrangements are treated differently and may be covered by grandfathering provisions.

I signed a contract before 10 August 2026. Can my purchase still go ahead?

Potentially, yes. If the contract was entered into before 10 August 2026, the transaction may still qualify under the grandfathering provisions, even if settlement occurs after that date. The relevant consideration is generally when the contract was entered into, rather than the settlement date.

I already own a residential property in my SMSF. What happens now?

Existing residential SMSF loans are grandfathered. The changes do not mean existing borrowers need to sell their property or unwind an existing SMSF loan structure simply because the rules have changed.

Can I refinance my existing SMSF residential loan?

Yes. Existing residential SMSF loans can still be refinanced, subject to normal lending and SMSF requirements. The changes relate to new borrowings to purchase residential property, rather than existing loans.

Can my SMSF still buy commercial property using a loan?

Yes. Commercial SMSF lending remains available for eligible business real property. For example, a business owner may purchase business premises through an SMSF and lease the property back to the operating business. Borrowers should always seek professional advice to understand whether this approach is appropriate for their circumstances.

Do SMSF lending opportunities still exist?

While new SMSF borrowing arrangements for residential property are no longer available, SMSF lending has not disappeared altogether. Existing residential SMSF loans may still require refinancing, and borrowing for eligible business real property remains available.

What should I do if I'm unsure how the new rules affect me?

The impact of the changes will depend on your individual circumstances, including whether you already have an SMSF loan, have exchanged contracts or are considering a future property purchase. Speak with your accountant, financial adviser or legal professional about how the new rules apply to you.

Important: The changes can affect borrowers in different ways. Borrowers should seek advice from their accountant, financial adviser or legal professional about how the new rules apply to their circumstances. Brokers who would like to discuss a scenario can speak with their ORDE BDM or our One Lending Team.