The federal government has proposed banning SMSFs from borrowing for residential property from August 2026. 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
On 23 June 2026, the federal government announced that from August 2026, SMSFs will no longer be able to borrow under LRBA rules to purchase residential property. The Unit Trust structure on this page sits outside the affected pathway and remains fully compliant.
The pathway affected by the proposed legislation.
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 proposed rule changes. 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