The new condition that has been inserted into section 67A of the SIS Act, preventing new LRBAs being used to acquire residential property after commencement, does not apply to maintaining or refinancing a borrowing under another arrangement entered into before commencement and, more importantly at the moment, an acquisition where the contract was exchanged before the commencement date, even if:

• settlement occurs after commencement;
• the LRBA loan is not executed until settlement; and
• finance approval has not yet been obtained.

Royal assent has now been granted so the commencement will be from 10th August 2026. This gives SMSF trustees about 6 weeks to get their act in order, including the purchase of a new property, if applicable.