SMSF Changes Come Into Force

A ban on new residential Self-Managed Super Fund (SMSF) lending has now come into effect.

From August 10, investors are no longer able to borrow through their SMSF to buy residential property.

Existing loans are grandfathered, allowing current borrowers to continue under existing terms and refinance if needed. 

According to data from the Australian Finance Industry Association, more than 16,000 new residential SMSF loans worth $10.3 billion were written in FY2026.

A survey by Money.com.au found 27% of SMSF investors plan to continue buying residential property outside their super once the ban takes effect.

About a quarter of respondents say they will redirect their attention to commercial property through their SMSF, which has not been banned.

It also says that 82% of Australians no longer see the benefit of establishing an SMSF if it cannot be used to borrow for residential property.

Real Estate Institute of Australia president Jacob Caine says it is among a variety of changes which have shattered confidence in the Australian property market.