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:
| Situation | Impact |
| Existing SMSF residential property LRBA | Will not be affected. |
| Contract signed, not yet settled | Likely not affected. However, this will need to be confirmed with a solicitor. |
| Considering to Purchase new residential property with LRBA | Will be affected, as SMSFs will no longer be able to purchase residential property using an LRBA. |
| Considering to Purchase new commercial property with LRBA | Will not be affected. |
The proposed changes have not yet come into effect and will only be enacted once the legislation receives Royal Assent.
Following Royal Assent, there will be a 45 day period before the changes officially commence.
We have also prepared a video that explains the proposed LRBA ban in more detail:
You can find more information about LRBAs at the link here.