§ Rules · Superannuation Industry (Supervision) Act 1993 (Cth) s 67A(2)(c), inserted by Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Cth) Sch 5
The 10 August 2026 SMSF borrowing change, dated from the Act itself
Worked example: The commencement arithmetic, from the Act
| Royal assent (Act No. 49 of 2026) | Fri 26 Jun 2026 |
| Commencement: the 45th day after assent (s 2 table item 7) | 26 Jun + 45 days |
| New-LRBA restriction starts | Mon 10 Aug 2026 |
| Contract exchanged before 10 Aug 2026 | protected, even if settlement is later (Sch 5 item 2(2)(b)) |
| Refinancing a pre-commencement borrowing | preserved (Sch 5 item 2(2)(a)) |
| Cash purchase without borrowing | outside s 67A entirely; no deadline applies |
The restriction lives inside s 67A, the borrowing exception - it reaches only acquisitions made under a limited recourse borrowing arrangement.
From 10 August 2026, a new limited recourse borrowing arrangement can only acquire real property that is business real property. The date comes from the Act's own commencement table: assent on 26 June 2026 plus 45 days. Buying residential property with fund cash, without borrowing, is not affected by this provision.
How the rule counts
- 01Schedule 5 item 1 adds a condition to SIS Act s 67A(2): for an asset that is real property, the asset must be business real property within the meaning of s 66.
- 02Commencement is set by the Act's s 2 table: the 45th day after royal assent. Assent was 26 June 2026, which lands the start on 10 August 2026.
- 03An acquisition under an arrangement entered into before commencement is protected, and the Act's note confirms the protection holds even if settlement happens after commencement.
- 04The provision does not touch purchases made without borrowing: a fund buying property outright with its own cash is outside s 67A, so the 10 August date imposes no deadline on cash purchases.
Sources
- Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Cth) Sch 5, s 2 table item 7 (C2026A00049)
- Superannuation Industry (Supervision) Act 1993 (Cth) ss 66, 67A
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