Everyone Read the Headline. Almost No One Read the Fine Print.
On 23 June 2026 the government agreed to ban new residential SMSF property loans. The panic says SMSF property is dead. The fine print says otherwise — especially if you own a business.
On 23 June 2026 the government agreed to ban new residential property loans (LRBAs) inside super funds as part of the deal to pass its budget tax package. Cue the panic that SMSF property is dead. It isn't. Here's what the fine print actually says.
What the ban actually covers
The ban is residential only and prospective. Existing arrangements are grandfathered, deals mid-stream get a roughly 45-day runway, and the package still has to pass Parliament. Most importantly: commercial and business real property were not touched.
The move that still works
The single most powerful SMSF move for business owners — buying your own premises and leasing it back to your trading company — still works. Rent stays deductible to the company. Fund earnings sit around 15%, capital gains around 10%, and ~0% in pension phase.
The twist nobody is talking about
The same budget scrapped the 50% CGT discount on personally held investments. Super's concessional rates didn't change. So the gap between holding the right asset personally versus in super just got wider, not narrower.
The numbers worth knowing
- Under 1% of residential borrowing in Australia runs through SMSFs
- ~$56B in LRBAs vs ~$12T of housing
- Rent: deductible to your company
- Fund earnings ~15%, capital gains ~10%, ~0% in pension phase
- Watch: NALI (45%), arm's length rent, Div 296 over $3M
“Structure beats reaction. The asset your business already pays rent on every month might be the best one you never thought to own.”
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