The landscape for Self-Managed Super Funds (SMSFs) in Australia is undergoing a significant shift. On June 23, 2026, the Australian Government announced a major legislative change that will restrict how SMSFs can use Limited Recourse Borrowing Arrangements (LRBAs) to acquire residential property. 

​For many trustees, this news comes as a pivotal moment to review their investment strategies. The bill has now  passed the Senate, the trajectory is clear: new residential borrowing via SMSF LRBAs will be banned from 10 August, 2026. 

​Here is a comprehensive breakdown of what is happening, what remains allowed, and how trustees should prepare. ​

The Core Change: A Ban on New Residential LRBAs 

The amendment aims to stop SMSFs from entering into new LRBAs specifically to purchase residential property. 

Expected Commencement: 10 August 2026 (45 days after Royal Assent). 

Current Status: The bill was approved by the Senate Friday 26 June. 

Once the legislation comes into force, trustees will no longer be able to use borrowed funds to buy a new residential investment property within their SMSF structure. 

While the residential ban is the headline, the legislation is designed to target specific asset classes. Several pathways remain open for SMSF trustees

1. Commercial Property is Unaffected 

Commercial LRBAs are completely unaffected by this legislation. Trustees who intended to use an LRBA for a residential investment can pivot their strategy to: Industrial units, Retail tenancies, Office suites. This remains a viable and stable avenue for SMSF borrowing. 

2. The "Business Real Property" Loophole 

The amendment explicitly allows SMSFs to enter into LRBAs to acquire "Business Real Property" (BRP). 

This is a critical distinction for trustees looking at properties that might otherwise be classified as residential. For example: A residential building used 100% as a business premise (e.g., a law firm, dental practice, or retail office). 

The strict requirement is that he property must be genuinely used for business purposes only. There can be no residential occupation and no mixed-use arrangements. If a portion of the building is used for living purposes, it will not qualify. 

3. Grandfathering for Existing Loans 

If your SMSF already has an active LRBA, you are safe. The amendment does not apply to existing arrangements. Also, the legislation explicitly permits the "maintenance or refinancing" of a borrowing under an arrangement entered into before the commencement date. You can continue to service and refinance your current loans without restriction. 

4. The "Exchanged Contract" Safety Net 

Timing is everything. If your SMSF has already exchanged contracts for a residential property before the Act commences, the ban does not apply.  Even if the settlement date falls after the ban comes into effect, the transaction is protected. 

G​iven the impending changes and the uncertainty, trustees should take the following actions immediately: 

• Obtain specific advice and do not rely on general assumptions. Consult with your SMSF specialist or accountant to ensure the property you intend to acquire meets the strict new legislative requirements, particularly regarding "Business Real Property" definitions. 
• Secure pre-approval from your lender before entering into any purchase contract. Lenders are already adjusting their policies based on these announcements. 
• Review your residential acquisition strategy, consider pivoting to commercial assets or reviewing your existing portfolio for refinancing opportunities. 

The window to act on residential strategies is narrowing. Proactive planning is the key to navigating this transition successfully.

Yesterday’s Federal Budget announcement has dominated the headlines, with families across Australia grappling with how new fiscal measures will impact their weekly outgoings. While the Budget addressed broader economic trends, the reality on the ground remains unchanged for many: the cost of living is high, and interest rates have been a persistent headwind. 

We have seen three interest rate rises so far this year alone, with market chatter suggesting more may be on the horizon. In this environment, sitting on an outdated home loan is a luxury few can afford. 

At Finance Logic, we recently assisted a client who was feeling the pinch. They came to us looking to manage their owner-occupied and investment properties while trying to clear high-interest debt, including a Buy Now, Pay Later (BNPL) agreement and credit card balances. 

The Result? Through a strategic refinance and restructure, we achieved: 

• $10,250 per annum in immediate savings. 
• A simplified finance structure by consolidating debt. 
• A hybrid loan strategy: a blend of fixed and variable rates. 

This blend approach is becoming a favourite among savvy borrowers. It locks in protection against further rate hikes on the fixed portion while keeping the variable portion open to benefit if rates eventually drop. It provides the certainty needed for monthly budgeting in uncertain times. 

With more lenders—both banks and non-banks—entering the market, the options available to you are wider than ever. However, navigating these options without expert guidance can be overwhelming. 

Is your loan structure still fit for purpose? Whether you need to consolidate debt to lower monthly repayments, access equity for a renovation, or simply secure a competitive rate against the backdrop of the new Budget, now is the time to act. 

Don't let the cost of living win. Let’s review your situation and find a solution that works for your future. 

​With fuel prices hitting record highs and the automotive market shifting faster than ever, navigating the transition to an electric vehicle (EV) is no longer just an environmental choice; it could be a very calculated financial move. 

As a finance broker, I’m seeing a surge in enquiries from both small business owners and individuals asking if the numbers actually stack up in 2026?  

Here is the reality of the current market and how you can finance the switch effectively. 

​From April 1, 2026, the Federal Government halved the fuel excise for three months to provide 26 cents per litre of relief. While that’s a welcome break at the pump, where we've seen unleaded climb toward 258c/L, it’s a temporary band-aid. 

The underlying trend points to petrol and diesel volatility being the new normal, while EV sales in Australia hit a record 12.2% market share recently. For many, the excise cut isn't a reason to stay with petrol, it's their final signal to plan an exit strategy. 

​If you operate a small business (turnover under $10 million), the $20,000 Instant Asset Write-Off has been extended until June 30, 2026. 

Your opportunity is the immediate deduction of the cost of eligible assets, including EVs or charging infrastructure, of up to $20,000 per asset. 

The vehicle must be "first used or installed ready for use" by June 30. With current long lead times for popular models, the window to secure a vehicle and claim it this financial year is closing fast. 

There are FBT benefits as well, with pure electric vehicles under the $91,387 Luxury Car Tax threshold remaining exempt from FBT. This is potentially a big saving that can lower your business’ tax liability significantly.

​Many lenders now offer specialised Green Loans with interest rates currently sitting around 5.99% fixed. These are often lower than standard car loans because the vehicle acts as high-quality collateral. 

This works if you want to keep your car finance separate from your home and want a fixed repayment schedule. 

However, if you have equity in your home, extending your existing mortgage to cover the EV purchase can be tempting because home loan rates are often lower than unsecured personal loans. The catch is that if you don't increase your repayments to pay off the car portion of the loan within 5–7 years, you could end up paying more over the life of the loan.  

The data shows that petrol vehicle sales are declining while hybrids and EVs are filling the gap. Whether you're looking at a sedan or commercial vehicle, the combination of high fuel costs and aggressive tax incentives makes the financial case for an EV stronger than ever in 2026.  

Talk to us today about your options.