The Window is Closing on SMSF Single Contract

Fury erupts over changes to SMSF borrowing to secure budget changes 

Property investors are in uproar over Anthony Albanese’s agreement with the Greens to force through his budget with critics calling it a “dodgy deal” that will hurt “mum and dad” property investors.

To secure the Greens’ budget support, the Prime Minister agreed to prevent people from using a loan loophole, called Limited Recourse Borrowing Arrangements (LRBA), that allowed self-managed super funds (SMSF) to borrow money and invest in residential properties.

Australians will still be able to invest in property through their SMSF, but they won’t be able to borrow money to do so. Existing LRBA arrangements won’t be affected.

Mr Albanese has defended the move which he said affects less than one per cent of property borrowing and frees up housing stock.

“These reforms will make it easier for Australians to buy their first home,” he said.

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