Yes, you can. But the rules changed in 2026, and if you want to use borrowed money inside your fund, the clock is running out.
What changed?
The Treasury Laws Amendment (Tax Reform No. 1) Act 2026 received Royal Assent on 26 June 2026. From 10 August 2026, self-managed super funds are banned from entering new Limited Recourse Borrowing Arrangements (LRBAs) to acquire residential property. NDIS and SDA housing is residential property, so this ban applies to it directly.
If you already have an LRBA in place, or you exchange contracts before 10 August 2026, you are grandfathered. Your existing arrangement stands even if settlement happens after that date.
Commercial property LRBAs are not affected by this change. Shares, ETFs and managed funds inside your SMSF are also unaffected. This is a residential borrowing ban, not a broader super investment ban, and it is important not to confuse the two.
Can my SMSF still buy NDIS or SDA property?
Yes. From 10 August 2026, your SMSF can still buy residential property, including NDIS and SDA housing, but the purchase must be paid in full using your fund’s existing cash. No loan, no LRBA, no borrowing of any kind against the fund.
This is not a smaller opportunity, it is a different one. You are buying with certainty instead of leverage risk, and you skip the LRBA structuring costs, the Bare Trustee setup and the lender approval process altogether. For many funds, that is a simpler path to ownership, not a harder one.
Does this apply to co-living and triple-living properties too?
Yes. Co-living and triple-living builds are residential property, the same as a standard NDIS or SDA dwelling, so the same rule applies. If you want to use an LRBA for one of these properties, you need to be grandfathered by 10 August 2026. After that date, a cash purchase is the pathway for all of our purpose built residential property types.
What is the deadline, exactly?
10 August 2026. That is 45 days after Royal Assent, and it applies to the whole country at once, not on a state by state basis. If you want to use an LRBA, you need one of two things in place before that date: an existing LRBA, or a contract of sale exchanged before the deadline. Settlement can happen later and you still keep the grandfathered protection.
If neither applies to you by 10 August 2026, your only path into SMSF property from that point forward is a cash purchase, paid in full.
Why would I still do this in cash?
Because the yields inside super are worth targeting on their own terms, loan or no loan. Our purpose built properties are built to target yields well above standard residential returns: NDIS around 10% to 15%, Co-Living around 8% to 10%, and Triple Living around 8% to 10%. These are targets, not guarantees, but they are the reason SMSF investors look at purpose built property in the first place.
Paying cash also changes the shape of the deal in your favor. There is no serviceability test to pass, no valuation risk shrinking your loan, and no ongoing repayment pressure on the fund. Your yield goes further because there is no interest to service, and your fund carries less complexity going forward.
What about other structures, like a family trust?
If you would rather not use your SMSF, or you want to combine strategies across your household, ACIGP supports family trusts and unit trusts as well, and we work with finance and lending partners across all of these structures. A trust is not subject to the new SMSF residential LRBA ban, so borrowing options stay open there. The right structure depends on your circumstances, your super balance, and your broader investment plan, and it is worth discussing all of your options before you settle on one.
What should I do before 10 August 2026?
If you are planning to use an LRBA, act now. Confirm whether you already have one in place, or move to exchange contracts before the deadline. Both protect you under the grandfathering rules, regardless of when settlement actually happens.
If you are planning a cash purchase, confirm your fund has enough liquid balance to pay in full, including costs and stamp duty, without leaving the fund short on working capital for the years ahead.
Either way, talk to your accountant or adviser about what the new rules mean for your specific fund before you commit to anything.
This is general information only and not financial, tax or legal advice. Speak to a licensed adviser about your circumstances.
Ready to see what your SMSF could target?
The law has changed, but the opportunity has not disappeared, it has shifted. Contact ACIGP for a free Returns Assessment. We are accountants, brokers and builders with over 100 years of combined experience, and we will show you what a cash purchase or an existing LRBA could target for your fund before the 10 August 2026 deadline.