Questions trustees ask before they commit.

On 23 June 2026 the government agreed to ban new limited recourse borrowing arrangements (LRBAs) for residential property, as part of a deal to pass its wider tax package. The legislation passed Parliament and received Royal Assent.

The ban commenced roughly 45 days after assent, around mid-August 2026. It applies to new residential-property borrowing from that date. Borrowing to buy commercial property (business real property) is not affected.

The change applies to borrowing. It bans new LRBAs for residential property held inside an SMSF.

The Unit Trust pathway we coordinate is a separate, non-borrowing structure. It does not rely on an LRBA, so the change does not reach it in the same way.

Every fund is different, so we don't ask you to take our word for it. Your own licensed SMSF adviser, lawyer and accountant review the structure and confirm its suitability and compliance for you, in writing.

The change is prospective. Based on the legislation as passed, existing LRBAs are grandfathered, refinancing a pre-commencement residential LRBA is still permitted, and an acquisition where contracts were exchanged before commencement is protected, even if settlement happens afterwards.

Exactly how far a transaction must have progressed by the commencement date to qualify is something to confirm with your licensed adviser and lawyer.

The change is narrow. An SMSF can still borrow under an LRBA to buy business real property, such as commercial premises. It can also still buy residential property outright where it has the funds and that fits the fund's investment strategy.

What is no longer available is a new LRBA to buy residential property. Whether any of these options suits your fund is a question for your licensed professionals.

Your SMSF stays the beneficial owner throughout. A Unit Trust holds the investment and returns income and entitlements to your fund. A Bare Trust holds legal title so a construction lender can take security and fund the build in progressive draws.

See the diagram and full process on How It Works.

The Unit Trust structure is supported by a written opinion from senior counsel and is built around a trust deed drafted for these requirements.

Because the position depends on your fund's circumstances, your own SMSF lawyer and auditor confirm compliance for you before anything proceeds. We don't determine that ourselves, and we don't give legal or tax advice.

Because your SMSF remains the beneficial owner, the structure is designed to keep the standard super rules and benefits in place, including:

• 15% concessional tax on fund income
• The one-third CGT discount on assets held more than 12 months
• Potential tax exemption on earnings in pension phase
• Protection from personal creditor claims
• Your existing estate planning and death-benefit nominations

How these apply to your fund should be confirmed with your accountant.

Security and drawdown are arranged by the lender and documented by your SMSF lawyer, so your fund's compliance is preserved.

We coordinate our partnered broker and the lawyer to put that in place. The structuring and the compliance sign-off sit with them.

In most cases you use your existing SMSF. We'll walk through your situation on the call and confirm whether any adjustments are needed.

There are establishment, broker and legal fees at the relevant stages. Because every situation is different, we share specific numbers on the discovery call.

That way we can talk through what you're getting at each step, rather than handing you a bare list of numbers.

Timing depends on your lender pre-approval, the property you're building and how quickly the legal documents move. We'll give you a realistic timeline once we understand your situation.

Yes. Our partnered broker secures construction-loan pre-approval before the Unit Trust is incorporated, and establishment only proceeds once the loan is unconditionally approved. You don't pay to set up structures before finance is in place.

Sign and intake, documentation, pre-approval, structure check, cost agreement, and trust incorporation. Each one is explained on How It Works.

No. PPI coordinates the process. Legal, tax, credit and financial advice comes from separate licensed professionals engaged by you.

Our partnered broker arranges the construction finance and manages the lender relationship for every client. This keeps the process consistent from pre-approval through to the final draw.

It's a short call, usually around 20 minutes. We talk through your current SMSF, the property you want to build, and whether the Unit Trust pathway may suit you. We also explain fees and the next step. There's no obligation.

You'll have a PPI coordinator as your main contact, backed by the wider team. You can meet everyone on About Us.

No. We don't pay or charge referral fees. Partners refer because the pathway helps their clients.

Accountants and SMSF administrators, financial planners, and buyers agents whose clients hold, or want to hold, property in super. See Partners for how referrals work.