Smith moves to the Melbourne Stadium on a month`s loan deal.
Nineteen-year-old Smith made his full debut for the Suffolk side earlier this season as he came on as a second half substitute in the EFL Cup defeat at Crystal Palace.
The Ipswich-born defender became a schoolboy with the Tractor Boys in 2006 before signing a two-year scholarship in 2014.
He then signed a one-year pro deal in July 2016 before extending his stay at Portman Road for another year at the beginning of the 2017/18 season.
Smith has featured heavily for Town’s under-23 side recently, thus warranting his first-team call-up in the EFL Cup. However, the opportunity of first-team football has been offered with Rod Stringer’s Clarets.
Smith is immediately made available for selection for Chelmsford’s visit to Poole Town this weekend.