Australia bans SMSF loans for residential property as research shows active super choices boost retirement wealth

On 23 June 2026 the Australian government announced that self‑managed superannuation funds (SMSFs) will no longer be permitted to borrow to purchase residential property. SMSFs have a 45‑day window to finalise any contracts already in place, after which new loans for residential homes are prohibited, although existing limited‑recourse borrowing arrangements may be refinanced under current rules. The restriction applies only to residential purchases and does not affect SMSF investments in commercial or industrial property.

Separately, research released by the Financial Services Council on 25 June 2026 found that Australians who actively manage their superannuation can achieve markedly higher retirement savings. Switching from the most expensive MySuper option to a low‑cost index fund at age 30 could add up to AU$1.2 million, while moving to a high‑growth product and later reverting could increase wealth by AU$690,000. The study warned that staying in MySuper products could leave people under 50 AU$540,000 poorer at retirement and called for policies that preserve members’ ability to make informed super choices.