Whilst a SMSF is generally prohibited from borrowing, a SMSF is permitted to borrow funds under a limited recourse borrowing arrangement (LRBA). The LRBA rules are complex and must be strictly adhered to. It is generally advisable to engage a financial adviser or legal professional to help with setting up these arrangements.
To summarise the rules:
Please note: Repayments from limited recourse borrowing arrangement will cause a credit to your super transfer balance account. These credits increase your transfer balance account and reduce your available personal cap space. Importantly, this applies in relation to a limited recourse borrowing arrangement that arises under a contract entered into on or after 1 July 2017. Furthermore, refinancing a pre-1 July 2017 limited recourse loan may also remain exempt from this change if certain criteria are met.