The ban on new SMSF residential LRBAs is now in effect. A separate, non-LRBA pathway remains open.
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How it works

From first call to construction, step by step.

The SMSF Unit Trust pathway uses a small set of entities and six coordinated steps. Here is how the structure fits together, who is responsible for each part, and what you'll be asked to do along the way.

The structure

Four parts working together.

Your SMSF stays the beneficial owner throughout. The Unit Trust holds the investment, a Bare Trust holds legal title, and the lender takes security so it can fund the build in stages.

SMSF Unit Trust structure Your SMSF holds units in the Unit Trust. The Unit Trust holds the beneficial interest in the property. A Bare Trust holds legal title. The construction lender takes security over the property and funds progressive draws. Income and entitlements flow back to your SMSF. BENEFICIAL OWNER Your SMSF HOLDS THE INVESTMENT Unit Trust HOLDS LEGAL TITLE Bare Trust THE ASSET Property Construction lender holds units beneficial interest legal title security + progressive draws Income and entitlements flow back to your fund

Simplified for illustration. Your SMSF lawyer documents the exact arrangement for your fund.

01 · SMSF

Stays the owner

Same trustees, same trust deed, same compliance obligations. Your fund remains the beneficial owner.

02 · Unit Trust

Holds the investment

Your SMSF holds the units. Income and entitlements are returned to your fund.

03 · Bare Trust

Holds legal title

Lets the construction lender take security in the ordinary way.

04 · Lender

Construction finance

Progressive-draw funding aligned to your build milestones, from slab to handover.

The six steps

What happens, who's involved, and your part.

Each step is handled by the right specialist. We coordinate them so you only make the decisions that matter. Tap a step, drag the timeline or press play.

Step 01 of 06

Sign and intake

We start with a short confidentiality agreement so we can share the structure in detail. Your SMSF lawyer and accountant receive intake forms, and our partnered broker is engaged.

Your part: Sign the NDA and complete the intake forms.

First callConstruction begins
Read all six steps in full
  1. STEP01

    Sign and intake

    We start with a short confidentiality agreement so we can share the structure in detail. Your SMSF lawyer and accountant receive intake forms, and our partnered broker is engaged.

    Your partSign the NDA and complete the intake forms.
    Who's involved
    PPIYouSMSF lawyerAccountantBroker
  2. STEP02

    Documentation

    Engagement forms are signed and the broker begins work on your file. The lawyers countersign the NDA, and the land and build contracts are prepared.

    Your partSign engagement forms and provide your fund documents.
    Who's involved
    BrokerSMSF lawyerBuilderPPI
  3. STEP03

    Pre-approval

    The broker secures construction-loan pre-approval. This happens before any trust is set up, so you are not paying for structures before finance is in sight.

    ◆ Pre-approval before anything is incorporated
    Your partProvide the financial information the lender asks for.
    Who's involved
    BrokerLender
  4. STEP04

    Structure check

    Your accountant reviews your fund and confirms whether a Bare Trust is required, and which party establishes it.

    Your partAnswer your accountant’s questions about the fund.
    Who's involved
    AccountantPPI
  5. STEP05

    Cost agreement

    The lawyers issue their cost agreement by DocuSign. Establishment only proceeds once the loan is unconditionally approved.

    ◆ Establishment waits for unconditional approval
    Your partReview and sign the cost agreement.
    Who's involved
    SMSF lawyerYou
  6. STEP06

    Trust incorporated

    The lawyers prepare the Unit Trust documents and incorporate the trustee company. With the structure in place, construction can begin.

    Your partSign the trust documents.
    Who's involved
    SMSF lawyerYou
Who does what

Every responsibility has an owner.

PPI coordinates. Regulated advice and sign-off come from licensed professionals engaged by you.

TaskPPIYouSMSF lawyerAccountant / auditorBroker
Coordinating the timeline
Construction finance and pre-approval
Trust deeds and documents
Confirming compliance for your fund
Whether a Bare Trust is needed
Investment decisions
LeadsSupports
During the build

Funding released as your property goes up.

Construction loans are drawn down in stages. The lender releases funds as each milestone is completed, so you're not paying interest on money that isn't in use yet. Exact stages are set by your build contract and lender.

Slab

Site works and foundations poured.

Frame

Wall and roof framing up.

Lock-up

External walls, roof, windows and doors in.

Fixing

Internal fit-out underway.

Handover

Final inspection and keys. The property is held inside your structure.

Before you start

What we'll talk about on the first call.

Things your advisers will look at
  • Whether your trust deed and investment strategy allow the investment
  • Your fund's balance and cash available for the land, fees and costs
  • What the lender needs for pre-approval
  • The timing of any contract already in progress

These are typical considerations. Your own advisers decide what applies to your fund.

Fees and timing

Explained before you commit

There are establishment, broker and legal fees at the relevant stages. Because every fund is different, we take you through the specific numbers on the discovery call.

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

More questions answered in the FAQs →
Next step

Know where you stand in 20 minutes.

A short discovery call, with no pressure and no obligation. We'll cover whether this pathway fits your SMSF and timeline, and what the next step looks like.

Book a discovery call → Send us a message

Or call 0430 099 325 · Mon–Fri, 9am–6pm AEST

Coordinating the SMSF Unit Trust pathway for trustees Australia-wide.

Contact

  • 0430 099 325
  • Mon–Fri, 9am–6pm AEST
  • Bella Vista, NSW
  • Book a call

© 2026 Professional Property Investors · ABN 23 463 903 663

General information only. The information on this website is factual or general in nature and does not take into account your objectives, financial situation or needs. It does not constitute financial product, tax, legal or credit advice, or an offer to enter into any arrangement. You should consider whether it is appropriate for you and obtain independent legal, financial and tax advice before establishing or investing through any structure described here. The law banning new residential-property LRBAs inside SMSFs has passed Parliament and received Royal Assent, with commencement around mid-August 2026; its detailed application should be confirmed against the final legislation and with your own advisers. Property and investment returns are not guaranteed and capital is at risk, including loss of capital. Past performance is not a reliable indicator of future performance. Professional Property Investors coordinates property selection and structuring; legal, tax and mortgage advice are provided by separate licensed professionals to whom we refer.

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