Mega landlord irate over new super borrowing ban for Aussies as industry erupts: 'This is insanity'

June 24, 2026 - 01:15

After almost 20 years, Australians will lose the ability to use their superannuation to borrow for property investments, a move that has sparked outrage among major landlords and property industry figures. The new rule, which takes effect immediately, prohibits self-managed super funds from using limited recourse borrowing arrangements to purchase residential real estate. Critics argue the ban will crush the dreams of everyday Australians trying to build wealth through property, while supporters say it will cool an overheated market and reduce risky speculation.

One prominent mega landlord did not hold back, labeling the decision "insanity" and claiming it punishes hardworking savers. "This is a direct attack on the ability of Australians to secure their retirement," the landlord said in a statement. "For years, this strategy has been a legitimate tool for middle-class investors, not just the wealthy." The industry has erupted in response, with property groups warning that the ban could push up rents and limit housing supply, as investors pull back from the market. Financial advisors also note that the change will force many self-managed funds to sell off properties, potentially flooding the market at a time when prices are already under pressure.

However, the government defends the move as necessary to close a loophole that allowed excessive risk-taking with retirement savings. Treasury officials argue that superannuation is meant for retirement income, not speculative property bets. The ban is part of broader reforms aimed at making housing more affordable for first-time buyers. With the industry still reeling, the debate over who really benefits from this policy shift is far from over.