AMP reopens SMSF applications following broker feedback

On Thursday (25 June), AMP Bank issued a note to its broker partners revealing that it was withdrawing new SMSF residential loans following the passage of the housing tax reforms.

It came after the Albanese government’s Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 officially passed both houses of Parliament on Thursday afternoon, which included a ban on new limited recourse borrowing arrangements (LRBAs) by super funds for residential property. The ban will take effect 45 days after the bill receives royal assent (along with changes to negative gearing and capital gains tax from 1 July 2027).

Royal assent typically takes 7–10 working days after a bill has passed both houses of Parliament.

Given the LRBA ban for residential property is not expected to take effect until mid-August, the bank surprised brokers by becoming the first lender to announce it would cease funding new SMSF residential property loans.

AMP Bank – which only re-entered the SMSF lending arena this year – said in its Thursday update that existing SMSF SuperEdge pre‑approvals where no property has been secured would also be withdrawn, while any undonditially or conditionally approved SMSF SuperEdge applications had to be settled by 31 July 2026 in order to proceed.

Applications submitted but not yet conditionally approved would have had to reach conditional approval by the close of business on 30 June 2026, it added.

As SMSF refinances are not impacted by the LRBA borrowing ban on residential property, AMP said that these applications could still proceed.

However, following broker feedback, AMP Bank confirmed on Friday that it had “reviewed its position” and was reopening SMSF loans.

It confirmed that all SMSF application types are still being accepted, including new purchase applications, pre-approvals, and refinances

“AMP Bank has listened to broker feedback following yesterday’s update in relation to SMSF loans and reviewed our position,” it wrote in its broker update.

“As a result, we have reopened SMSF SuperEdge lending across all application types, including new purchases, pre-approvals, and refinances.”

However, the bank added that applications will still need to have an exchanged contract by a date determined by the legislative changes (expected to be mid-August).

Lenders and brokers have been racing to finalise a groundswell of SMSF residential loan applications in the past few days, as many investors look to get into the market before the RBA ban on residential properties comes into effect.

Players from across the third-party channel have been voicing their surprise and disappointment about the ban, which was announced last week after the Albanese Government backed an amendment from the Greens in exchange for their support in passing the bill.

Eight non-bank lenders last week united to strongly condemn the move, arguing that the blanket ban is based on outdated data, will not improve housing affordability, and unfairly targets middle-income and younger workers using modest leverage to secure their retirement rather than wealthy speculators.

Furthermore, the coalition of non-banks warned that the policy will stifle market competition (given that non-banks are the predominant providers of these loans), disrupt live property deals due to an abrupt 45-day transition window, and restrict portfolio diversification.

However, some lenders, such as non-bank lender Granite, are actively sourcing SMSF loans until the changes take effect.

For example, on Friday (26 June), the lender revealed it has extended its SMSF interest rate specials until 31 August and is removing its 25-basis-point loading on proposed contributions until 30 September for full purchase investment loan applications and SMSF refinances.

[Related: Lenders unite to condemn SMSF resi borrowing ban]