Alternative lender’s leadership unpacks Budget's SMSF ban and tax changes, urging brokers to diversify
Tony MacRae (pictured, left), chief commercial officer at Bluestone Home Loans, used the non-bank lender's national broker roadshow to walk brokers through a year of rapid change at the business – before delivering some damning words about Labor’s controversial Budget reforms.
Speaking at the roadshow's Sydney leg as part of Bluestone's Adapt. Diversify. Win. series, MacRae discussed Bluestone’s transformative three-year journey in getting back to its roots as a non-standard lender.
"The way we set up our policies, the way that we had our funding lines structured with those that provided our funding was too complex,” he told the audience. “So we completely changed that, we simplified that, we broadened our credit policy, we removed restrictions on postcodes so that we could lend more and say yes to more people."
He did not hold back when addressing the government's overhaul of capital gains tax (CGT), negative gearing and self-managed superannuation fund (SMSF) borrowing rules.
"The reality is we've just seen a Budget, we've seen an economy that has been as disruptive as I think any of us have seen," he told brokers. “I think it is a betrayal of the Australian public by the government.”
MacRae's comments come as brokers nationally grapple with a cluster of reforms introduced through the Treasury Laws Amendment (Tax Reform No. 1) Act 2026, which passed the Senate in June and reshapes how property investors are taxed from 1 July 2027.
Perhaps most surprising among the changes, given the lack of prior warning, is a ban on new limited recourse borrowing arrangements (LRBAs) for residential property inside an SMSF, which takes effect on 10 August 2026.
Bluestone’s head of non-standard lending Aaron Taylor (pictured, centre) told attendees that confusion around the Budget has been widespread, with some lenders incorrectly withdrawing negative gearing or interest deductibility altogether in response to the reforms.
"[It's] been an interesting couple of months," Taylor said, noting he had already seen the same pattern play out in New Zealand when similar deductibility changes were introduced there. He said Bluestone was continuing to review its own SMSF-linked lending settings as further clarity emerges from regulators.
Diversification framed as growth opportunity
Despite the disruption, Bluestone's leadership used the roadshow to position the changes as an opening for brokers willing to look beyond traditional prime lending.
"In the current environment, growth for brokers doesn't necessarily come from doing more of the same," Taylor said. "It's about recognising the growing opportunities beyond prime deals and having the confidence to have those different conversations."
Richard Chesworth (pictured, right), Bluestone’s head of specialised distribution, echoed the sentiment, pointing to self-employed borrowers and more complex lending scenarios as underserved segments. "We know there are customers who don't fit neatly into a box," he said. "Our role is to help brokers see those opportunities and feel confident supporting a wider range of clients."
Roadshow builds on record growth
The roadshow followed a strong run for Bluestone, which has grown its annual originations from $2.4 billion three years ago to roughly $9 billion in financial 2026, giving it a 21% share of the non-standard, non-bank lending market (per Bluestone’s own figures).
The roadshow featured former NRL player James Graham on high performance and resilience, along with networking sessions. It concludes in Melbourne on 12 August, two days after the SMSF lending ban takes effect – timing MacRae acknowledged would leave brokers navigating fresh rules in real time.
"Every broker is looking for ways to grow," MacRae said. "Our goal is to help them do exactly that."
