What this addendum changes
This is an Addendum (amendment) to an existing ATO ruling, SMSFR 2009/2, which explains what counts as 'borrowing money' for self-managed super funds under section 67 of the Superannuation Industry (Supervision) Act 1993.
Most of this update is housekeeping - fixing typos, updating case citations, correcting cross-references and replacing old section numbers like 67(4A) with the current 67A(1).
The substantive change
The one substantive change is new: SMSFs will no longer be able to use a limited recourse borrowing arrangement to buy real property unless that property is business real property. This restriction applies to arrangements entered into from 10 August 2026 onwards.
Any arrangements already in place before that date are grandfathered and unaffected.
Effective date
This change took effect on 10 August 2026 and already applies.
Key actions
- If you run an SMSF or advise one, check whether any planned property purchase via a limited recourse borrowing arrangement from 10 August 2026 onwards is business real property - residential property purchases this way will no longer be allowed
- Existing limited recourse borrowing arrangements entered into before 10 August 2026 are grandfathered, so review your fund's paperwork to confirm the date the arrangement was entered into
- Read the consolidated version of SMSFR 2009/2 (referenced on the ATO legal database page) rather than relying on the original 2009 ruling, since the definitions and section references have been updated
- Bookkeepers and advisers should flag this change to SMSF trustee clients considering property purchases through borrowing arrangements
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.