The residential borrowing ban has generated more questions from SMSF investors, accountants and financial advisers than any single regulatory change in years. This page answers every question we are hearing right now, in plain English.

The Borrowing Ban — Core Questions

What exactly has changed for SMSFs in 2026?

The Australian Government has legislated to ban new Limited Recourse Borrowing Arrangements (LRBAs) for residential property acquisitions by SMSFs. SMSFs can no longer take out a new loan to buy residential property. Existing LRBAs are not affected.

Can my SMSF still buy residential property?

Yes — but only by purchasing outright with cash. No new borrowing arrangements are permitted for residential property.

Can my SMSF still borrow to buy commercial property?

Yes. Commercial property LRBAs remain fully available. The ban applies specifically to residential property.

Are existing SMSF property loans protected?

Yes. Existing LRBAs are not required to be unwound. The ban applies to new arrangements only.

Can I refinance my existing SMSF residential loan?

Refinancing an existing LRBA is generally permitted as it does not constitute a new borrowing arrangement. Confirm with your adviser as the final legislation is published.

Commercial Property Questions

What types of commercial property can my SMSF buy with an LRBA?

Warehouses, offices, retail spaces, medical suites, childcare centres, industrial units, service stations and any other commercial or industrial property. The key rule is that the property must be used for business purposes and cannot be occupied by a fund member or related party (unless it is business real property leased at arm’s length).

Can my business buy my commercial property from my SMSF?

Your business can lease the property from your SMSF at arm’s length market rent. Your SMSF cannot sell the property to you personally or to a related entity while the LRBA is in place.

What yield should I target on an SMSF commercial property?

A gross yield of 5% to 8% is a reasonable target range for commercial property inside an SMSF, depending on the asset class, location and lease terms. Net yield (after outgoings) is typically 4% to 7% for net-lease commercial properties.

Strategy Questions

Should I pivot my SMSF to commercial property after the ban?

If you want leveraged property exposure inside your SMSF, commercial is now the only viable path for new acquisitions. Whether it is right for your fund depends on your balance, risk tolerance and investment horizon. Seek professional advice.

What is the minimum SMSF balance for a commercial property purchase?

A minimum balance of $150,000 to $200,000 is generally considered necessary to support a commercial property acquisition via LRBA, accounting for the deposit, stamp duty, due diligence costs and a cash reserve for ongoing expenses.

Can I use the Collings off-market portal to find SMSF commercial property?

Yes. The Collings off-market portal lists residential and commercial investment properties, including properties well-suited to SMSF acquisition. Signing up is free and gives you access to GeeVee AI property analysis, portfolio tracking and off-market listings. collings.com.au/portal

GeeVee Verdict

The residential borrowing ban is a significant regulatory change but it is not the end of SMSF property investing. The commercial property opportunity is real, accessible and structurally stronger than residential for many SMSF investors. The key is to act quickly, get the right advice, and use platforms like Collings to access the best off-market opportunities before the broader market catches up.

Whether you are reviewing your SMSF strategy or looking for your next investment, the Collings Property Platform gives you access to off-market commercial and residential opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal