AMP Reverses SMSF Ban — But Mid-August Deadline Looms

AMP Bank reversed its surprise SMSF lending freeze within 24 hours after broker pushback, but investors must still exchange contracts before mid-August.

AMP Bank sent brokers on a rollercoaster last week — announcing it would immediately stop accepting new self-managed super fund (SMSF) residential loan applications, then reversing that call less than 24 hours later after an outpouring of broker feedback. While the reversal is welcome news, SMSF investors and their brokers shouldn't ease off the accelerator. A hard legislative deadline is still approaching.

What Triggered the Initial Freeze

On Thursday 25 June, AMP Bank issued a note to its broker partners confirming it would withdraw new SMSF SuperEdge purchase applications, pre-approvals, and new pre-approval extensions, effective immediately. The move came hours after the Albanese government's Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 officially passed both houses of Parliament on Thursday afternoon.

That legislation includes a ban on new limited recourse borrowing arrangements (LRBAs) by super funds for residential property — a significant policy shift added by the Greens in exchange for their support of the broader tax reform bill. The ban does not take effect immediately: it kicks in 45 days after the bill receives royal assent. Royal assent typically takes 7 to 10 working days after a bill passes both houses of Parliament, putting the expected commencement date around mid-August 2026.

Given that timeline, many in the industry were surprised that AMP Bank — which only re-entered the SMSF lending market this year — moved so quickly to cut off new applications. Under its original announcement, existing SMSF SuperEdge pre-approvals where no property had been secured would have been withdrawn entirely. Conditionally or unconditionally approved applications would have needed to settle by 31 July 2026. Applications not yet at conditional approval would have had to reach that milestone by close of business on 30 June 2026.

The Adviser reported that lenders and brokers across the industry had been racing to finalise SMSF residential loan applications in the days following the bill's passage, as investors looked to move before the ban came into effect.

AMP Reverses Course After Broker Pressure

The broker community pushed back hard — and it worked. On Friday 26 June, AMP Bank issued a follow-up update confirming it had "reviewed its position" and reopened SMSF lending across all application types.

"AMP Bank has listened to broker feedback following yesterday's update in relation to SMSF loans and reviewed our position," the bank wrote to brokers. "As a result, we have reopened SMSF SuperEdge lending across all application types, including new purchases, pre-approvals, and refinances."

The reversal means brokers can continue submitting SMSF residential loan applications to AMP Bank right now — including new purchase applications and pre-approvals, not just refinances. SMSF refinances, it is worth noting, are not affected by the LRBA ban and will remain available to borrowers regardless of when the legislation commences.

However, AMP made clear that a deadline still applies. All applications for new SMSF residential purchases will need to have an exchanged contract in place by a date determined by the legislative changes — expected to be around mid-August 2026.

A Divided Industry Response

AMP is far from the only lender navigating this policy shift. The Adviser reported that eight non-bank lenders united to strongly condemn the LRBA residential ban, arguing it is based on outdated data and will not improve housing affordability. Those lenders warned the blanket ban unfairly targets middle-income and younger workers using modest leverage to build their retirement savings — not wealthy speculators. They also flagged that the abrupt 45-day transition window risks disrupting live property deals and stifling competition, given that non-banks are the predominant providers of SMSF residential loans.

Some lenders are actively leaning into the remaining window. Non-bank lender Granite extended its SMSF interest rate specials until 31 August and removed its 25-basis-point loading on proposed contributions until 30 September for full purchase investment loan applications and SMSF refinances.

What SMSF Investors Should Do Right Now

If you have been considering residential property inside a self-managed super fund, the clock is now ticking in a very real way.

**Application already in progress:** AMP Bank and other lenders are still accepting new purchase applications and pre-approvals. But you must exchange contracts before the LRBA ban takes effect — expected mid-August 2026. Talk to your broker now if your deal is not close to exchange.

**Still searching for a property:** Time is extremely tight. A new application needs to be assessed and result in an exchanged contract within weeks. Be realistic about whether your timeline can accommodate this.

**Considering refinancing an existing SMSF loan:** You are not affected by the ban. SMSF refinances are excluded from the legislative change and proceed as normal. Given current market activity, checking whether your [investor home loan](/home-loans/investor) rate is competitive is a smart move regardless.

**Holding a pre-approval:** Confirm with your broker that it remains valid following AMP's reversal. The bank's updated position should reinstate pre-approvals that were briefly at risk.

The LRBA ban on residential property is a permanent change. Once it takes effect, super funds can no longer borrow to purchase new residential properties. This is the final window to act under existing rules.

For those already in the SMSF lending market, a [refinance comparison](/home-loans/refinance) can quickly show whether your current loan is still competitive. And for anyone crunching the numbers on a potential purchase, the [repayment calculator](/calculators/repayment) is a useful starting point.

*[The Adviser](https://www.theadviser.com.au/lender/48605-amp-reopens-smsf-applications-following-broker-feedback) first reported AMP Bank's reversal on 29 June 2026.*