The Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 passed both houses on 25 June 2026 and received Royal Assent on 26 June 2026. From 10 August 2026, new SMSF borrowing to buy residential property is no longer available. Contracts unconditionally exchanged before that date proceed under the old rules. Here is what changes, what continues, and the questions to put to your licensed adviser.
Some lenders set earlier internal cut-offs — the practical deadline with your lender may come before 10 August.
General information only. This page is not financial, tax, legal or credit advice, and Realtyex does not provide SMSF advice. Whether an SMSF — or borrowing inside one — is right for you is a question for your licensed financial adviser and accountant.
The change is specific: it ends one kind of transaction — new borrowing inside an SMSF to buy residential property. It does not unwind existing loans, and it does not stop super buying property outright.
This is the detail most people get wrong. The date that matters is the date your contract becomes unconditionally exchanged — not the date the land settles, and not the date the build finishes.
A contract exchanged unconditionally before 10 August 2026 proceeds under the old rules even if settlement or construction completes well after that date. A purchase still sitting at "conditional" or "offer accepted" on 10 August does not.
Everything upstream of exchange — advice, structure, credit assessment, property selection, legal review — has to be finished before exchange can happen. If any step in that chain runs long, the exchange date moves with it. That is why the planning question is not "when is the deadline?" but "when does each step need to start so exchange lands before it?"
Each one takes real time, and they run in sequence — you can't skip ahead. This is the typical order of operations for an SMSF purchase that borrows.
Your licensed financial adviser and accountant determine whether an SMSF — and borrowing inside it — suits your position at all. Nothing else starts until this does.
The fund and bare-trust structure are established or updated so the fund is legally able to borrow and hold the asset.
SMSF lending is assessed on its own track — typically slower than personal lending — and lenders set their own timetables, some earlier than the legal date.
Property selection, then legal review of the contract by your solicitor. The property side can run in parallel with finance — but it has to be settled before exchange.
The step that stops the clock. Exchange before 10 August 2026 and the purchase proceeds under the old rules — even if settlement or the build completes later.
The sequence is the point. None of these steps is unusually hard on its own — but each waits for the one before it, and the last one has a fixed date. Anyone starting from zero should map the chain with their adviser before assuming the window is reachable.
A deadline is not a reason to buy. These are the questions worth putting to the people licensed to answer them — before any property enters the conversation.
Is an SMSF right for me at all — regardless of this deadline? Would you recommend it if the law weren't changing?
Does my fund support holding a property? Balance, contributions, liquidity, insurance inside the fund — does the whole picture work?
Do my trust deed and investment strategy currently permit an LRBA — and if not, what needs updating and how long will that take?
What is the realistic timeline for each step — advice, structure, credit assessment, legal review — and does unconditional exchange before 10 August 2026 remain achievable from where I am today?
Which lenders are still writing SMSF residential loans, and to what internal cut-off? Some adjusted their products ahead of the legal date.
If the window isn't reachable, what are my alternatives? Buying outright without borrowing, commercial property, investing outside super — or simply not proceeding?
I have an existing SMSF loan — what should I do with it? It continues after 10 August and can be refinanced. Is it worth reviewing?
Am I being rushed? If the answer to any of the above is "it's tight", is the right decision to compress the process — or to let this window pass?
If your adviser says no, that's the answer. The change removes one financing route; it doesn't make a purchase that was wrong for your fund suddenly right.
This page is general information only. It is not financial, investment, legal, tax or credit advice, and it does not consider your personal objectives, financial situation or needs. Realtyex does not provide SMSF advice, financial product advice or credit assistance.
The legislative details described here — the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 (passed both houses 25 June 2026, Royal Assent 26 June 2026, commencing 10 August 2026), the end of new residential LRBAs, and the grandfathering of contracts unconditionally exchanged before commencement — are a general summary as at July 2026, not a legal interpretation. Transitional rules can contain conditions and edge cases not covered here, and lender policies change independently of the law.
Before making any decision about an SMSF, borrowing, or a property purchase, obtain advice from a licensed financial adviser, a registered tax agent or accountant, and a solicitor — based on your own circumstances and the current law.
30 minutes with Bao — talk through what the runway to exchange looks like in practice and how wholesale property selection works when a date is fixed. Your licensed adviser and accountant handle the SMSF advice — that isn't what we do, and we'll say so on the call.
A call with Realtyex is general information and property services only — it is not financial, tax or credit advice, and no SMSF recommendation will be made.