Changes to LRBA Rules for SMSFs

On 23 June 2026, the Federal Government announced a significant change as part of a legislative agreement with the Greens, proposing to ban SMSFs from purchasing residential property using a Limited Recourse Borrowing Arrangement (LRBA).

A summary of the changes that will take effect, along with other key information, is set out below:

SituationImpact
Existing SMSF residential property LRBAWill not be affected
Contract signed, not yet settledLikely not affected. However, this will need to be confirmed with a solicitor.
Considering to Purchase new residential property with LRBAWill be affected, as SMSFs will no longer be able to purchase residential property using an LRBA.