The rules for buying property through your self-managed super fund have changed, and if you are looking at NDIS or specialist disability accommodation, you need to understand exactly what shifted. The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026, and it closes the door on new SMSF borrowing for residential property from 10 August 2026.
This does not mean your SMSF is locked out of NDIS property. It means the path in has changed. Here is what the law actually says, what it protects, and what your options are if you want to hold purpose built property inside your fund.
What Changed and When
From 10 August 2026, SMSFs are banned from entering new Limited Recourse Borrowing Arrangements, known as LRBAs, to acquire residential property. There is a 45 day transition period from Royal Assent to the commencement date, so this is not a distant change. It is close, and it is fixed.
An LRBA is the structure SMSFs have used to borrow for property purchases, with the lender’s recourse limited to the asset itself. From the commencement date, that structure is no longer available for new residential purchases. NDIS and SDA housing is residential property, so this ban applies to it directly.
Commercial property is treated differently under the new law, and we cover that below.
What Grandfathering Protects
If your fund already has an LRBA in place, or you exchanged contracts before the commencement date, that arrangement is protected. Grandfathering covers existing LRBAs and contracts exchanged before 10 August 2026, even if settlement happens after that date.
If you are mid-transaction right now, this matters. It means the clock is on the exchange date, not the settlement date. If you have been considering a borrowed purchase and you are close to ready, that timing is worth understanding properly rather than guessing at.
For everyone starting fresh after 10 August 2026, grandfathering will not apply, and the borrowing pathway is closed for new residential purchases.
You Can Still Buy NDIS Property in Your SMSF, Just Not With Borrowed Money
Here is the part that gets missed in the noise around this change: your SMSF can still buy NDIS and SDA property. What it cannot do is borrow to fund a new purchase.
Your fund can buy residential property, including NDIS and SDA housing, outright with existing superannuation cash. The purchase must be paid in full. No LRBA, no lender, no limited recourse structure required, because there is no loan to structure.
This shifts the conversation from lending capacity to fund capacity. The question is no longer “what can I borrow against my balance”. It is “does my fund hold enough to buy the asset outright, plus costs”.
How Much You Need in the Fund
Because borrowing is off the table for new residential purchases, the deposit percentages and post-settlement liquidity buffers that used to define this conversation are no longer the relevant numbers. Those figures described a lending pathway that applied to arrangements entered before the cutoff. For a purchase from 10 August 2026 onward, the fund needs to cover the full purchase price plus transaction costs and stamp duty, in cash, before you exchange.
That is a higher bar to clear in one hit, but it also removes the serviceability tests, valuation risk on the loan, and liquidity buffer requirements that came with borrowing. Once the property settles, there is no loan sitting against it and no lender conditions to manage. What your fund needs to hold to make a purchase work now depends on your balance, your other fund assets, and the specific property you are looking at. That is a conversation to have specialist to specialist, not a number we will put in general content.
Commercial Property Is a Different Story
The LRBA ban applies to residential property only. Commercial property LRBAs are unaffected by this change, and SMSFs can continue to borrow to acquire commercial property under the existing rules. Shares, ETFs, and managed funds held inside an SMSF are also unaffected.
If your fund’s strategy includes commercial property alongside a residential NDIS purchase, borrowing is still available on the commercial side. This is a structuring conversation worth having early, because the right mix of asset types can change what your fund can achieve.
Structures ACIGP Supports
An SMSF is not the only vehicle for holding purpose built property. ACIGP supports purchases through family trusts and unit trusts as well, and we work alongside finance and lending partners across different areas to match the structure to your circumstances. If an outright SMSF purchase does not suit your fund’s position right now, a trust structure may be the better fit, and that is worth discussing before you rule anything out.
Target Yields on ACIGP Purpose Built Property
Whichever structure you use to hold it, the property itself needs to earn its place in your portfolio. ACIGP’s purpose built properties target yields of 10% to 15% for NDIS, 8% to 10% for Co-Living, and 8% to 10% for Triple Living. We do not guarantee returns on any property, and you should treat every yield figure as a target based on current market conditions, not a promise.
How ACIGP Helps
ACIGP is a team of accountants, brokers and builders with over 100 years of combined experience, and we build across Victoria. We do not treat SMSF and NDIS purchases as generic transactions. We help you work out whether an outright SMSF purchase, a commercial LRBA, or a trust structure fits your position, and we connect you with the lending and advisory partners who can confirm what is achievable for your fund.
If you have been planning a borrowed SMSF purchase and the 10 August 2026 change affects your timeline, talk to us before you assume the path is closed. In many cases it has just moved.
This is general information only and not financial, tax or legal advice. Speak to a licensed adviser about your circumstances.
Book Your Free Returns Assessment
Find out what your SMSF or trust structure can actually buy under the new rules. Book a free Returns Assessment with ACIGP today, and we will show you the real numbers on a high-yield purpose built property matched to your situation.