Housing industry insights
Advocacy & policy
News & inspiration
Support & guidance
Member perks
Industry insurance
For your business
Apprentices
Building it right
Building materials & products
Managing your business
Managing your safety
Building your business
Other subjects
A rewarding career
Study with us
A job in the industry
Grow with us
Our podcasts
Our initiatives
Get involved
Awards
Awards winners
Industry events
Most popular products
Top categories
For your business
Address
{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change location Address
{{propApi.title}}
{{propApi.text}} {{region}} Change location{{propApi.title}}
{{propApi.successMessage}} {{region}} Change locationGovernment's 1.2 million housing target becomes harder to reach from today
Government's 1.2 million housing target becomes harder to reach from today
Member and guest login
Enter your email and password to access secured content, members only resources and discount prices.
Did you become a member online? If not, you will need to activate your account to login.
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
Forgotten password
Need some help?
If you are having problems logging in, please call HIA helpdesk on 1300 650 620 during business hours.
If the email address you have entered is registered, you will receive an email with further instructions.
Become part of the HIA community
Enables quick and easy registration for future events or learning and grants access to expert advice and valuable resources.
Create a guest account
Enter your details below and create a login
Send me exclusive tips, early access to new launches, and special offers. I can change my mind at any time.
By clicking Get started now you agree to the terms and conditions and privacy policy.
"From today it gets harder for Australia to build the 1.2 million homes governments have committed too," said HIA Chief Economist, Tim Reardon.
Monday, 10th August 2026
From today, new Limited Recourse Borrowing Arrangements (LRBAs) can no longer be used by Self-Managed Super Funds (SMSFs) to build new residential homes. The Housing Industry Association (HIA) has consistently warned that removing this source of finance from the housing market will reduce investment in new homes at precisely the time Australia needs significantly more housing.
"Initial analysis indicates that the SMSF ban is likely to have a greater adverse impact on the supply of new homes than the Government's changes to negative gearing and capital gains tax combined," said HIA Chief Economist, Tim Reardon.
“Despite this, there hasn’t been a cost/benefit analysis, a regulatory impact statement or even Treasury modelling released to justify the policy change.
“The government hasn’t declared what the net public benefit will be from denying tens of thousands of Australian’s access to a home, each year.
"Our survey of Australia's largest home builders indicates the SMSF changes alone will reduce detached home commencements by between 3.5 and 5 per cent per year.
“In addition, around 2,500 new home contracts that had already been signed are expected to be cancelled as the administrative arrangements could not be completed by today.
“The adverse shock of prohibiting borrowing to build a new apartment by an SMSF is likely to be more significant.
"Governments have committed to delivering 1.2 million new homes. Yet from today, Australia is removing one of the investment pathways that has helped finance the construction of new housing."
"You cannot make it harder to invest in new homes and expect more homes to be built."
"Not a single SMSF lives in a home in Australia and therefore aren’t adding to demand.
“And when an SMSF builds a new home, they do not add to demand, but they only add to supply.
“The housing challenge needs to be considered as if we are trying to squeeze 11 million households into 10 million homes.
“The cause of the housing challenge isn’t that we have too many investors, or that prices are too high. These are the symptoms of a shortage of housing stock, not the cause of the shortage.
“Every new policy should be assessed against a simple test: does it increase the number of homes built?
"The Government should release the modelling that informed this decision, including its estimate of how many fewer homes will be built as a consequence of banning SMSF borrowing for residential property.
"If that modelling has not been undertaken, then the Government should commission and publish a cost benefit analysis of the policy, including its impact on housing commencements, rental supply, construction employment and government revenues for state and federal governments.
"Treasury has estimated the housing supply consequences of the changes to negative gearing. Australians deserve the same transparency for a policy that will have a tangible adverse impact on the supply of new homes commencing construction.
"If we are serious about building 1.2 million homes, every policy should encourage, not discourage, investment in new housing."
"Initial analysis indicates that the SMSF ban is likely to have a greater adverse impact on the supply of new homes than the Government's changes to negative gearing and capital gains tax combined," said HIA Chief Economist, Tim Reardon.
“Despite this, there hasn’t been a cost/benefit analysis, a regulatory impact statement or even Treasury modelling released to justify the policy change.
“The government hasn’t declared what the net public benefit will be from denying tens of thousands of Australian’s access to a home, each year.
"Our survey of Australia's largest home builders indicates the SMSF changes alone will reduce detached home commencements by between 3.5 and 5 per cent per year.
“In addition, around 2,500 new home contracts that had already been signed are expected to be cancelled as the administrative arrangements could not be completed by today.
“The adverse shock of prohibiting borrowing to build a new apartment by an SMSF is likely to be more significant.
"Governments have committed to delivering 1.2 million new homes. Yet from today, Australia is removing one of the investment pathways that has helped finance the construction of new housing."
"You cannot make it harder to invest in new homes and expect more homes to be built."
"Not a single SMSF lives in a home in Australia and therefore aren’t adding to demand.
“And when an SMSF builds a new home, they do not add to demand, but they only add to supply.
“The housing challenge needs to be considered as if we are trying to squeeze 11 million households into 10 million homes.
“The cause of the housing challenge isn’t that we have too many investors, or that prices are too high. These are the symptoms of a shortage of housing stock, not the cause of the shortage.
“Every new policy should be assessed against a simple test: does it increase the number of homes built?
"The Government should release the modelling that informed this decision, including its estimate of how many fewer homes will be built as a consequence of banning SMSF borrowing for residential property.
"If that modelling has not been undertaken, then the Government should commission and publish a cost benefit analysis of the policy, including its impact on housing commencements, rental supply, construction employment and government revenues for state and federal governments.
"Treasury has estimated the housing supply consequences of the changes to negative gearing. Australians deserve the same transparency for a policy that will have a tangible adverse impact on the supply of new homes commencing construction.
"If we are serious about building 1.2 million homes, every policy should encourage, not discourage, investment in new housing."
For more information please contact:
Latest articles
09 Oct
Government delays ATO credit card payment changes
The Federal Government has announced that the Australian Taxation Office (ATO) will continue to accept credit card payments for tax liabilities until the end of the 2026-27 financial year, delaying changes that were previously due to take effect on 1 December.
09 Oct
Government provides breathing space for builders and tradies on ATO credit card ban
The Housing Industry Association (HIA) welcomes the Federal Government's stepping in and agreeing to delay the Australian Taxation Office's (ATO) proposed ban on credit card payments, providing builders, tradies and suppliers with much-needed breathing space while a longer-term solution is developed.
08 Oct
HIA Victoria not failing housing targets as badly as others is not success
The Housing Industry Association (HIA) says the Victorian results in the HIA National Housing Accord Update released yesterday, while not as poor as some other states, highlight the urgent need for a reset in housing policy after the upcoming state election.
08 Oct
HIA Safety Summit headlines National Safe Work Month
HIA’s annual Safety Summit is being held today in Adelaide (8 October) and will bring together industry leaders, regulators and workplace safety experts, providing practical guidance to help residential builders and tradies create safer worksites and support compliance in an ever-changing world.