What happened
Following regulatory changes banning new limited recourse borrowing arrangements (LRBAs) for residential property purchases, SMSF lending is reorienting toward commercial real estate and refinancing existing residential loans. ATO data shows LRBA assets hold steady at 7-8% of total SMSF holdings, while lenders like AMP Bank have adjusted liquidity buffer requirements from 10% to 5%.
Why it matters here
Self-managed super funds hold substantial property assets, but tighter regulatory guardrails mean trustees seeking property exposure must focus on commercial premises or business real property. Proper structure and cash flow buffer management remain vital to ensure compliance and avoid liquidity constraints within SMSF structures.
What to watch
ATO quarterly SMSF statistical releases and commercial property lending updates from bank and non-bank lenders over the final quarter of 2026.
Source
smsfadviser.com