By Amit Aggarwal | FCPA · SSA® · Life Beyond Numbers · July 2026
A short, plain-English rundown for anyone who’s been weighing up residential property inside their super and hasn’t pulled the trigger yet.
The 30-second version
New borrowing inside an SMSF to buy residential property stops from around 10 August 2026 (timing still being confirmed). It’s law now.
Almost nothing else changed. Existing loans are protected, commercial property is untouched, the tax rules inside super haven’t moved, and you can still buy residential property outright. You just can’t borrow to do it.
If borrowing to buy was your plan, the clock is real. Setup takes weeks and the contract has to be signed before the ban, so you’d want things moving by around 15 July.
Not sure where you sit? Book a call and we’ll work out whether it’s realistic for you.
I’ve had more than a dozen calls in the last two weeks. All of them some version of the same question: “Amit, what happens now?”
Last week the rules around borrowing inside an SMSF to buy residential property changed, and they changed for good. It’s law now. So I recorded a short video to walk through it, and I’ve written it up here for anyone who’d rather read than watch.
Here’s the short version. If buying residential property inside your super has been on your mind and you’ve been sitting on the fence, the window to do it with borrowing is closing. Not the ability to buy. The ability to borrow to buy. There’s a difference, and it matters.
What’s changing for SMSF residential property, and when
New borrowing inside an SMSF to buy residential property will stop from around 10 August 2026. That timing is still being confirmed, and I’ll update people if it moves.
It applies to new arrangements only, going forward. That’s the whole change. One thing is ending, and it became law last week.
What hasn’t changed for SMSF property (which is most of it)
This is the part I’ve spent most of my calls on, because there’s been a lot of worry that isn’t warranted.
- →Existing SMSF loans are protected. If you already hold a residential property in your SMSF with borrowing against it, nothing changes. The products stay available. You can still refinance. You can keep doing exactly what you were doing.
- →Commercial and business property is completely unaffected. If you’re planning to buy commercial property, you can still do that after the ban starts. No change.
- →The tax treatment inside super is exactly the same. Sell an investment property within 12 months and you pay 15%. Hold it past 12 months and it’s 10%. Hold it until you retire and there’s no capital gains tax on it. None of that moved.
- →You can still buy residential property in your SMSF. They haven’t stopped you buying. They’ve stopped you borrowing to buy. An SMSF can still purchase residential property outright.
So if you hear “SMSF property is dead,” it isn’t. One door is closing. The rest of the house is exactly as it was.
One thing to steer clear of
I’ve already seen some creative structures doing the rounds to get around this. Stay clear of them. Anything with residential property attached to it is going to get looked at closely by the tax office from here. Don’t be the test case.
Your SMSF residential property timeline, if this is for you
If residential property inside super has been a real consideration and you’re still on the edge, these dates matter.
The window
How much time is really left
It’s the contract that counts, not settlement. Settlement can come months later.
The thing people underestimate is setup time. Funding the fund, contribution caps, rollovers, the legal setup of the SMSF and the holding trust. None of that happens overnight. It takes weeks.
So here’s how I’d read it. Worst case, you want your SMSF established and your money moving by around 15 July. That leaves you three to four weeks to find the property and sign a contract.
The contract has to be signed before the ban starts. And it’s the contract that counts, not the settlement. Settlement can happen well after. This is to the best of my knowledge based on how I’ve read the legislation, and I’ll flag it if anything shifts.
That leaves roughly 40 days to work with. Four things shape whether it’s doable for you:
- →Funding the fund. Contributions and rollovers take weeks, so start now.
- →Lender appetite. One lender flagged an early close then pulled the announcement. As far as I’m aware, SMSF lending is business as usual for now.
- →Legal setup. The fund and the holding trust take time. Allow for it.
- →The contract. It must be in place before the ban, with due diligence done.
So, should you do anything?
Two weeks ago the people calling me were asking “should I do this or not?” That question has moved. Now it’s “do I still have time?”
If you’ve already done your thinking and you’ve been paused for other reasons, this is your prompt to make the call one way or the other. If you’re only starting to think about it now, be honest with yourself about whether the timeline is realistic.
A deadline is a reason to get clarity, never a reason to rush a bad decision.
And to be clear about how I see deadlines: I’m not interested in anyone making a panic purchase. I’m interested in you making an informed one while you still have the option in front of you.
If you want to work out where you stand, book a time with me below and we’ll go through it. That’s what a strategy call is for.
Want to talk through what this means for you?
Let’s work out whether the timeline is realistic for your situation.
Amit Aggarwal FCPA · SSA® is a licensed tax agent and mortgage broker who has worked with high-income professionals since 2016.
Frequently asked questions
When exactly does SMSF borrowing for residential property stop?
New borrowing inside an SMSF to buy residential property is set to stop from around 10 August 2026. The exact timing is still being confirmed, so check for updates before you rely on a specific date.
Does the ban affect my existing SMSF property loan?
No. Existing SMSF loans are protected. You can keep the loan, refinance it, and continue holding the property exactly as before. The change only applies to new borrowing arrangements going forward.
Can my SMSF still buy residential property after the ban?
Yes. Your SMSF can still purchase residential property outright. What stops is the ability to borrow to buy it. If your fund has the cash, a residential purchase is still allowed.
Is commercial property inside an SMSF affected?
No. Commercial and business property is completely unaffected. You can still borrow inside your SMSF to buy commercial property after the residential ban starts.
Is it the contract or the settlement date that counts?
Based on how the legislation currently reads, it’s the contract that has to be signed before the ban starts, not the settlement. Settlement can happen after. Confirm your specific situation with your adviser before acting.
How long does it take to set up an SMSF to buy before the deadline?
Setup takes weeks. Funding the fund, contribution caps, rollovers, and the legal setup of the fund and holding trust all take time. To have a realistic shot, you’d want the fund established and money moving by around 15 July 2026.
