Can I use my super to buy property?

You can use your super to invest in property through a Self-Managed Super Fund (SMSF).

• From 10 August 2026, you will no longer be able to take out a new SMSF loan to buy residential property.
• Existing residential SMSF loans remain valid and can generally be refinanced under the grandfathering rules.
• SMSFs can still borrow to purchase eligible commercial property using a Limited Recourse Borrowing Arrangement (LRBA), subject to lender and legislative requirements.
• SMSFs can still buy residential property outright if the fund has enough cash and complies with superannuation rules.

What is an SMSF property loan?

A Self-Managed Super Fund (SMSF) is a private super fund that you manage yourself.

Historically, SMSFs could borrow using a Limited Recourse Borrowing Arrangement (LRBA) to purchase residential and commercial property.

Following the 2026 reforms, LRBAs are now primarily used for commercial property and for refinancing eligible existing residential SMSF loans. The "limited recourse" structure means the lender's security is generally limited to the property held within the borrowing arrangement, rather than the other assets of the SMSF.

What types of property can you buy?

Your SMSF can buy both residential and commercial property, but with different rules:

• Residential property: houses, townhouses, units. Must be a genuine investment. You, your family, and anyone related to your fund cannot live in it.
• Commercial property: offices, retail, warehouses, medical suites. Your own business can lease a commercial property from your SMSF at market rate.
• Vacant land - in some circumstances, though this is more complex and fewer lenders will fund it.

So how can you buy property with super today?

It comes down to how your fund pays for the property. With new residential borrowing off the table from 10 August 2026, there are two broad paths:

• 1Commercial property: SMSFs can still purchase eligible commercial property using an LRBA.
• 2Residential property: an SMSF can still own residential property outright; it just can't take out a new loan for one.

Why do people still invest through an SMSF?

The tax advantages are significant. Inside an SMSF in accumulation phase, rental income is taxed at 15%, compared with your marginal tax rate (up to 47%) if you held the property in your own name. Capital gains on assets held for more than 12 months are taxed at an effective 10% (the 15% rate cut by a one-third CGT discount). Once the fund is paying a retirement-phase pension, earnings on the assets supporting that pension may be tax-exempt, subject to the transfer-balance cap and the exempt current pension income (ECPI) rules.

This makes property inside super one of the most tax-effective long-term investment strategies available to Australians. Tax outcomes depend on your fund and your circumstances, so confirm the numbers with your accountant.

Is an SMSF still right for you?

It depends on your goals and we'll always tell you honestly if it isn't. SMSF property investment works best for people who:

• Have at least $150,000 to $200,000 in super to cover the deposit, costs and a cash buffer (commercial purchases usually need a larger deposit of around 20 to 30%)
• Have stable income or rental income to service the loan
• Have a long enough time horizon to benefit from the tax advantages
• Are comfortable with the responsibility of running their own super fund

If you're not sure which side of the line you're on, that's exactly what a first conversation is for.