Recent legislation has narrowed the types of property an SMSF can buy with a new limited recourse borrowing arrangement, or LRBA. But SMSF property lending has not disappeared.
Your fund may still be able to borrow for eligible business real property, refinance an existing SMSF property loan or complete a purchase covered by the transitional rules. An SMSF may also still buy residential property without borrowing, provided it meets the wider superannuation rules.
The right starting point is to work out which pathway applies to you. Your SMSF advisers can confirm the legal, tax and strategy position, while Pinnacle Brokers can help you understand the loan options and lender requirements
What can an SMSF still do with property?
Borrow to buy eligible commercial property
An SMSF may still be able to use an LRBA to buy property that qualifies as business real property, often shortened to BRP.
Depending on the property and how it is used, this may include an office, warehouse, retail premises or other commercial investment property. It can also include business premises leased to a related business where all relevant superannuation rules are met.
Calling a building “commercial” is not enough on its own. A qualified SMSF tax or legal adviser should confirm that the property meets the BRP definition before you rely on this pathway.
Refinance an existing SMSF property loan
If your SMSF already has a residential property loan under an earlier LRBA, the recent change does not automatically prevent you from refinancing it.
The transitional provisions protect refinancing of borrowing under an arrangement entered into before 10 August 2026. The ATO’s current guidance describes a refinance as a new loan contract for the same asset, with the same or a new lender.
If you want to understand how your existing loan compares with currently available options, Pinnacle can review the lending position with you. Approval still depends on lender policy, the fund’s position, the property and the proposed loan.
Keep an existing residential-property LRBA
Borrowing arrangements entered into before the change are protected by the transitional rules. The new BRP condition does not, by itself, require an existing residential LRBA to end or the property to be sold.
The fund must still comply with the existing LRBA requirements and its other superannuation obligations. Your SMSF accountant, auditor and legal adviser can check those areas.
Complete some purchases already under contract
A purchase may be covered where the asset is acquired under an arrangement entered into before 10 August 2026, even if finance or settlement occurred later.
This turns on the legal effect of the documents—not simply the date of a pre-approval, deposit or informal offer. Ask your solicitor to confirm whether your contract falls within the transitional rules and whether any later variation matters.
Buy residential property without borrowing
The legislation did not ban SMSFs from owning residential property. A fund may still be able to purchase residential property without an LRBA, subject to its trust deed, investment strategy and every other applicable superannuation rule.
Whether that is suitable for the fund is a matter for appropriately qualified financial, tax and legal advisers rather than a lender or broker.
How Pinnacle Brokers can help with an SMSF property loan
Once your advisers have confirmed that the proposed transaction is permitted and appropriate, Pinnacle can focus on the finance.
Finance for eligible commercial property
For a proposed commercial property purchase, Pinnacle can review the finance request and explain how participating lenders may assess:
- the SMSF trust and trustee structure;
- the fund’s financial position and contribution history;
- the proposed deposit or available equity;
- the property, lease and expected rental income;
- the fund’s capacity to meet repayments; and
- the lender’s SMSF documentation and policy requirements.
Property eligibility and loan approval are separate questions. Your legal and tax advisers address compliance and BRP status; the lender decides whether the application meets its credit criteria.
Refinancing an existing SMSF loan
For a protected existing LRBA, Pinnacle can help you explore a same-asset refinance and compare suitable lender options. This can include explaining servicing, valuation, deposit or equity, liquidity and documentation requirements before an application is lodged.
Not every lender will accept every SMSF, property or loan structure. Comparing the requirements early can help you focus on realistic options.
Support through the loan process
SMSF lending involves specialised lender policies and detailed documentation. Pinnacle can assist by:
- discussing the purchase or refinance objective;
- reviewing the lending information and documents available;
- comparing suitable SMSF lending policies;
- explaining the lender’s deposit, equity and servicing requirements;
- coordinating loan information with your accountant, financial adviser and solicitor where needed; and
- communicating with the selected lender through assessment and settlement.
Pinnacle provides lending guidance only. It does not decide whether a property is BRP, interpret a contract for the transitional rules or advise whether an SMSF investment strategy is right for you.
If you have an eligible commercial property in mind or want to review an existing SMSF property loan, visit our SMSF loans page or book an appointment to discuss the finance.
What did the recent legislation change?
The legal change is narrower than some headlines suggest. From 10 August 2026, real property acquired using a new LRBA must be business real property within the meaning of section 66 of the Superannuation Industry (Supervision) Act 1993.
This condition was added by Schedule 5 of the Treasury Laws Amendment (Tax Reform No. 1) Act 2026. The same Schedule contains the protections for earlier borrowing arrangements, qualifying refinances and assets acquired under pre-commencement arrangements.
In practical terms, a new LRBA generally cannot be used to buy an ordinary residential rental property. That is different from saying all residential property investment through an SMSF is banned.
What does business real property mean?
Business real property broadly involves an eligible interest in real property used wholly and exclusively in one or more businesses.
The ATO’s ruling SMSFR 2009/1 explains that this is an onerous, fact-based test. The property’s name, appearance or zoning does not determine the answer by itself, and genuine private or domestic use may prevent a property from qualifying.
For property financed under a new LRBA, the ATO says it must qualify as BRP when the LRBA is entered into and remain BRP throughout the life of the arrangement. Obtain appropriate advice before committing to a property or changing how it is used.
What to have ready for an SMSF loan conversation
The exact documents will depend on the lender and transaction, but an early conversation is easier when you can outline:
- whether this is a new commercial purchase or refinance;
- the property type, proposed use and lease position;
- the SMSF trustee structure;
- the fund balance, recent contributions and other eligible income;
- the available deposit or equity;
- the existing loan details, if refinancing; and
- the advisers already involved.
Do not delay legal or tax advice while waiting for finance. The structure, contract and BRP position may affect which loan pathway is available
This article provides general information only and is current as at 2 September 2026. It does not take into account your objectives, financial situation or needs and is not tax, legal, superannuation or financial advice. Pinnacle Brokers provides lending guidance only. Seek independent advice from appropriately qualified professionals before acting. Credit approval is subject to lender criteria, and not all lenders or products will be available for every SMSF or property.