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The Housing Industry Association (HIA) has called on the Australian Government to release Treasury's assessment of the impact that new restrictions on self-managed superannuation fund (SMSF) borrowing will have on the supply of new homes.
“The Government had already acknowledged through the Budget that changes to housing taxation would reduce the supply of new homes.
"HIA's concern is straightforward. Restricting access to capital available to finance new housing is likely to reduce the number of homes that are built. The question is by how much?
“SMSFs represent one source of private investment that supported the construction of new housing, particularly in markets where investor demand contributed to project feasibility.
"Policies that reduce investment in new housing should be accompanied by transparent advice on their likely impact on housing supply.
"Housing does not become more affordable if fewer homes are built.
“Calculating the number of loads for the purchase and construction of a new home by SMSFs does not account for the loss of new home supply caused by the policy change.
“Home building is determined by the marginal borrower, especially in the case of apartment building, so removing a small number of projects can have a larger adverse impact on housing supply.
"Every new home also generates tax revenue through GST and stamp duty and additional restriction at the Federal level can adversely impact state revenue.
“The Government has also introduced a range of positive housing initiatives through the Budget, including increased investment in enabling infrastructure and planning reform.
"Those policies recognise that Australia needs more homes.
"The question now is whether restricting another source of private investment will offset some of those gains.
"We know the Government considered the housing impacts of the negative gearing reforms. The same level of transparency should apply to the SMSF borrowing restrictions,” concluded Mr Reardon.
The new Buyer Protection laws will start on Wednesday, 1 July 2026 after an extraordinarily challenging process with numerous last-minute changes. HIA is providing this Member Alert to help members navigate the key ‘need to know’ on these new laws, with more detailed material to follow.
The Tasmanian Parliament has passed the First Home Owner Grant Amendment Bill 2026, confirming a $20,000 grant for eligible first home buyers who contract to build a new home.
HIA is concerned about proposals to construct data centres on land earmarked for housing development.
"Treasury modelled the adverse impact of changes to taxation of Negative Gearing and CGT the Budget on housing supply. The Government should now provide the same level of analysis on the impact of restricting SMSF investment in residential housing,” stated HIA’s Chief Economist, Tim Reardon.