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ARTICLE · 14 SEPTEMBER 2026

LRBAs Are Not Dead: What Are Some Options To Use LRBAs Moving Forward?

Bennett & Philp Lawyers
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Recent legislative changes have restricted how self-managed superannuation funds can use limited recourse borrowing arrangements, particularly for residential property acquisitions. Business owners and primary producers may still leverage these arrangements to acquire commercial premises and farming land through their SMSFs. Understanding the new definition of business real property and available investment options is crucial for SMSF trustees navigating these regulatory changes.

AustraliaWealth Management
Kimberley Barnes
Kimberley Barnes
Emily Ryan
Emily Ryan
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In light of the recent legislative changes, you may be questioning whether limited recourse borrowing arrangements (LRBAs) are still useful. The answer is yes, LRBAs may still be used in certain circumstances.

While self managed superannuation funds (SMSFs) can no longer use LRBAs to acquire residential property, borrowing opportunities remain available, particularly for business owners looking to acquire a commercial premise through their SMSF.

Recent Changes

From 10 August 2026, self managed superannuation funds (SMSFs) can only use LRBAs to acquire real property that is business real property.

This was introduced in the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 and was effective 45 days after the Act received assent (26 June 2026).

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