Since 10 August 2026, an SMSF can no longer take out a new loan to buy residential property under the standard rules. There is still a legally-approved pathway. Our Unit Trust structure preserves every SMSF benefit while enabling construction finance, reviewed by King's Counsel, the ATO, ASIC, and the SMSF Compliance Board.
King's Counsel approved · ATO reviewed · ASIC compliant · SMSF Compliance Board certified
Since August 2026, self-managed super funds can no longer borrow to buy residential property under the standard rules. LRBA loans on residential property, established homes, single-part contracts. But commercial property, still allowed.
Our Unit Trust pathway. The compliance structure that keeps your build on track. Access to construction finance for residential builds, with every SMSF benefit preserved.
Here is how it works. Your super fund stays the beneficial owner, keeping every tax benefit. It invests in an approved Unit Trust. The Unit Trust pairs with a Bare Trust, which holds legal title. That is what lets a construction lender take security.
The result? Residential property, built within your super fund, fully compliant, independently reviewed by King's Counsel, the ATO, ASIC, and the SMSF Compliance Board.
Book a 20-minute call with Nick. Click the button below.
The legislation received Royal Assent on 26 June 2026, and from 10 August 2026 an SMSF can no longer enter a new LRBA to purchase residential property. Arrangements already in place before that date continue, and can still be refinanced. The Unit Trust structure on this page sits outside the affected pathway and remains fully compliant.
The pathway the legislation closed.
The compliant structure that keeps your build on track.
Your SMSF stays the beneficial owner. The Unit Trust holds the investment and receives the SMSF entitlements. A Bare Trust holds legal title so a construction lender can take security without breaching SMSF rules.
Stays the beneficial owner. Same trustees, same trust deed, same compliance rails.
The approved structure that connects your SMSF to the lender via the Bare Trust.
Holds the legal title so the construction lender can take security, without breaching SMSF rules.
Approved construction finance with progressive draw-downs aligned to building milestones.
Because your SMSF stays the beneficial owner, the standard super rules and benefits continue to apply, with nothing carved out or compromised.
Investment income through the Unit Trust is taxed at the SMSF's concessional 15% rate, consistent with standard SMSF operations.
Assets held more than 12 months attract the one-third CGT discount, an effective 10% rate on applicable gains.
In pension phase, earnings and capital gains may be entirely tax-exempt under standard super legislation.
Property held in the structure carries the same robust protection from personal creditor claims as any other super asset.
Integrates with your existing trust deed. Binding death-benefit nominations and beneficiary planning all preserved.
Trustees retain full discretion over investment decisions, consistent with your SMSF investment strategy.
Four independent reviews. Four green lights. The structure was built specifically to satisfy each of the regulators and bodies that govern SMSF and property finance in Australia.
Independent senior legal opinion confirming the lawfulness and structural integrity of the Unit Trust under trust law, superannuation legislation, and property law.
Reviewed and approved against the Superannuation Industry (Supervision) Act 1993 and associated regulations. No breach of SMSF compliance obligations.
Confirmed compliance with tax law including the non-arm's length income (NALI) provisions, LRBA requirements, and Part IVA anti-avoidance rules.
Reviewed against financial services and managed investment scheme legislation. Confirmed compliance with the Corporations Act 2001.
Six considered steps, each handled by the right specialist. We coordinate the legal, accounting, and broking team so you only have to make the decisions that matter.
A short discovery call with Nick. We talk through your current SMSF, the property you want to build, and whether the Unit Trust structure is the right call given the August 2026 rule change. No obligation, no hard sell.
Straight answers to the questions we get most often from SMSF trustees in the days after the federal announcement.
Quick chat with Nick. No pressure, no obligation. We'll talk through whether this pathway fits your SMSF and timeline, and what the next step would look like.
Or message Nick directly on WhatsApp