Dear Clients and Associates,
We wanted to reach out and provide an update on our recent newsletter regarding the SMSFs use of Limited Recourse Borrowing Arrangements (LBRAs) to
purchase residential residential property.
The legislation has now officially been passed, meaning that from 10 August 2026, SMSFs can longer enter into new LRBAs to purchase residential property.
The good news? If you’ve already acted, you’re in the clear: Existing SMSF residential property loans are not affected, Residential property contracts entered into before 10 August 2026 remain valid, and SMSFs can still use LRBAs to purchase commercial property.
If purchasing a residential property through your SMSF has been on your radar, please get in touch with as as soon as possible. There may still be options available depending on where you’re up to in the process, and we’d be happy to discuss your circumstances.
If you require any further information, simply reach out by calling our office on (03) 9863 9779 or email at admin@connectadvisors.com.au
Kind Regards,
Connect Business Advisors
Level 8, Tower 3, 18-38 Siddeley Street Docklands VIC 3008
GPO Box 430 Melbourne VIC 3001
Note: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone. If expert assistance is required, professional advice should be obtained.
