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“Can my SMSF still buy property” has a two-part answer since 10 August 2026. Yes, and new borrowing is now limited to one category of real property.
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 added a condition to section 67A of the superannuation legislation: where a fund borrows under a new arrangement to acquire real property, that property must be business real property.
That is a narrower test than the headlines suggested, and it is not simply a residential ban. Existing arrangements were left in place.
The amendment works by reference to what the property is used for, not by its type. For a new arrangement entered from 10 August 2026, real property must be business real property within the meaning of section 66 of the superannuation legislation.
That cuts both ways, and most summaries only report one of them. Ordinary residential property is out, as expected. So is real property that is not residential but is also not used in a business, which can include vacant commercial land or farmland not being farmed.
In the other direction, residential property that genuinely qualifies as business real property is not excluded by the type of dwelling it is. Whether a given property qualifies is a determination for your fund’s adviser rather than something to assume from its zoning or its appearance.
It does not stop a fund owning residential property, and it does not require existing holdings to be sold. A fund with the cash can still buy residential property outright.
So “can my SMSF still buy property” is really two questions: whether the property is business real property, and whether the fund is borrowing. Borrowing is where the new condition applies.
Superannuation compliance sits outside a credit licence. Your accountant or SMSF adviser should confirm the fund’s position, and we arrange lending around whatever structure they settle. See how a limited recourse borrowing arrangement works.
For existing holdings, “can my SMSF still buy property” is the wrong question. The right one is whether anything must change, and it need not.
An arrangement entered before 10 August 2026 is grandfathered. Trustees already holding residential property under a borrowing arrangement do not have to unwind it because the rules changed around them.
Refinancing is carved out by the Act itself rather than by anyone’s interpretation. The new condition does not apply to the extent an arrangement maintains or refinances a borrowing under an arrangement entered before commencement.
A contract entered before 10 August 2026 that settles afterwards is also preserved. What does not count, per the MFAA’s guidance to brokers, is having established a fund, lodged an application or obtained an approval in principle before that date.
What has narrowed sharply is the lender panel. Fewer lenders write fund lending at all than did a year ago, and the ones that remain have their own terms.
That is the practical constraint on an existing arrangement: not whether you may refinance, but who will.
Business real property is the one category new borrowing can still reach, and it is where “can my SMSF still buy property” turns from a rules question into a lending one, which is why “can my SMSF still buy property” has a yes in it at all.
| Property type | New borrowing after 10 August 2026 | What to check |
|---|---|---|
| Ordinary residential | New arrangements are not available, because it is not business real property | Whether the fund can buy outright instead |
| Business real property, including residential used in a business | Still available, because this is the test the Act now applies | That the property actually qualifies. Zoning and appearance do not settle it |
| Not residential, but not used in a business | Also unavailable. Vacant commercial land and unfarmed farmland can fall here | The category most often missed, because people read the change as residential only |
| Mixed use | Depends entirely on whether it qualifies as business real property | This needs proper advice before any offer is made |
| Existing arrangement, or a contract signed before 10 August 2026 | Preserved, and refinancing it is carved out by the Act | Which lenders still write fund lending if you need to refinance |
Do not read commercial zoning as confirmation. Whether a property is business real property for superannuation purposes turns on how it is used, and it is a question for your fund’s adviser rather than for us.
Mixed-use properties need looking at especially carefully, and so does any property that is vacant or not currently being used in a business at all.
The route most trustees have not reconsidered when asking “can my SMSF still buy property” is an outright purchase, and it is the one the change leaves completely alone. A fund with sufficient cash can still buy residential property, because the change was about borrowing rather than about owning.
That is obviously a larger commitment of fund assets and raises diversification questions the fund’s investment strategy has to address. Those are matters for your adviser, not for us.
What we can say is that the lending question disappears entirely in that scenario, which for some funds makes it simpler rather than harder.
Related party arrangements and in-specie transfers also have their own rules, and none of them are credit questions. If that is the direction you are considering, “can my SMSF still buy property” stops being a lending question almost entirely.
The rules are only half the answer to “can my SMSF still buy property”. The other half is who will actually lend, and that has moved more than the legislation.
Fund lending was already a narrow panel before the change. Several lenders had withdrawn from it over previous years, and the residential restriction removed the largest remaining use case.
What that leaves is a small number of lenders writing business real property arrangements, and a slightly different set willing to refinance an existing residential arrangement.
Fund lending is also structured differently from personal lending. Shorter terms and lower lending ratios are common, and the fund has to hold liquidity beyond the deposit.
Trustees comparing a fund purchase against holding the same asset personally should compare the structures rather than just the rates. See fund deposit requirements and what a fund can borrow to buy.
“Can my SMSF still buy property” resolves into one of three positions, and the first step is different in each.
If you hold property under an arrangement entered before 10 August 2026, the Act preserves it and your adviser can confirm that for your fund. Review it when you would have anyway.
If you were planning to borrow for ordinary residential property, that route is no longer open. Business real property, an outright purchase, or holding the asset personally are the alternatives to weigh with your adviser.
And if you are looking at business real property, the sequence is advice first and lending second. Whether the property qualifies decides whether there is a loan to arrange at all.
See SMSF lending and the SMSF property lending guide, or call +61 447 959 546.
Yes, and new borrowing is narrower than it was. From 10 August 2026, real property acquired under a new limited recourse borrowing arrangement must be business real property, so ordinary residential has to be bought without borrowing.
Property that is neither residential nor used in a business is also outside the new test. Your fund’s adviser should confirm the position before you make an offer.
Yes, with the new condition applied. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026, commencing 10 August 2026, requires real property acquired under a new borrowing arrangement to be business real property.
It did not prohibit a fund from owning residential property, did not require existing holdings to be sold, and left business real property borrowing available.
Arrangements entered before 10 August 2026 are preserved, so trustees already holding property under a borrowing arrangement are not required to unwind it.
The Act also carves out maintaining or refinancing that borrowing, and preserves a contract signed before commencement that settles afterwards. Your fund’s adviser should still confirm the position for your fund.
Where the property is business real property, yes. That is now the test the Act applies to real property under a new borrowing arrangement.
Commercial zoning does not settle it, and property that is not being used in a business, such as vacant land, can fall outside it despite not being residential. That determination sits with your accountant or SMSF adviser.
The change was about borrowing rather than owning, so a fund with sufficient cash can still acquire residential property outright.
It commits a larger share of fund assets and raises diversification questions the fund’s investment strategy has to address, which makes it a question for your adviser rather than a lending decision.
Fund lending has always been written by a narrower group of lenders than ordinary residential lending, and which lenders are active changes, so a list published here would be out of date quickly.
For a business real property purchase or a refinance of an existing arrangement, we can tell you which lenders are writing it and on what terms at the time you ask.
A summary of the change written for finance brokers is published by the MFAA. Superannuation compliance sits outside a credit licence, so your accountant or SMSF adviser should confirm your fund’s position.
Paritosh Wadhwani | Director and Principal Broker, APW Finance
Member of the Finance Brokers Association of Australia (FBAA). Arranging residential, commercial and specialist lending for Sydney clients across a panel of more than 50 lenders.
APW Finance Pty Ltd, 304/20a Lexington Drive, Bella Vista NSW 2153. Email: info@apwfinance.com. Phone: +61 447 959 546.
ACN 620 646 479 | ABN 79 620 646 479
This guide is general information only. It does not take into account your objectives, financial situation or needs, and it is not financial or credit advice. Lending criteria, interest rates, duty thresholds and government schemes change, and every application is subject to lender approval.
Consider whether this information suits your circumstances and seek independent advice before acting. Figures quoted are current at the date below and should be confirmed before you rely on them. Last reviewed: October 2026.
APW Finance Pty Ltd delivers expert lending solutions with personalised service, empowering clients across residential, commercial, and business sectors.