- Published on 23 Jun 2026
- - Self Managed Superannuation
Recent media coverage has raised renewed discussion about whether Limited Recourse Borrowing Arrangements (LRBAs) should continue to be allowed for residential property inside self-managed super funds (SMSFs).
At this stage, there has been no confirmed change in law. However, the conversation has created uncertainty for some SMSF trustees who use borrowing strategies to invest in property.
An LRBA allows a super fund to borrow money to purchase an investment asset, with the loan limited to that specific asset. This means other retirement savings in the fund are generally protected if the investment does not perform as expected.
Residential property inside super is also subject to strict rules. It cannot be used by the fund members or their relatives, and it must be treated purely as an investment asset.
The current debate largely centres on broader concerns around housing affordability, risk, and the role of superannuation in property markets. While some argue for tighter restrictions, others view LRBAs as a legitimate and controlled investment tool.
At this stage, no changes have been confirmed, and existing rules continue to apply. However, SMSF trustees should remain aware of potential policy developments and ensure their investment strategy remains flexible.
If you would like to read the original article, you can access it here:
https://smsmagazine.com.au/news/2026/06/23/lrbas-banned-for-residential-property/
At Your Lifetime, we recommend regularly reviewing SMSF strategies to ensure they remain appropriate under current rules and adaptable to future change.