The Australian Government has announced a range of reforms affecting self-managed super funds (SMSFs) designed to strengthen protections across the superannuation system, with several changes specifically affecting SMSF trustees.
Key points for SMSF trustees
The proposed changes are:
- ATO powers to stop some rollovers into new SMSFs where there are concerns about fraud, financial abuse, misconduct or potential harm
- Mandatory trustee education and a knowledge test before a new SMSF can be registered
- Uniquely identifiable SMSF bank accounts to help identify and prevent fraud
- Written investment strategies required upfront, together with measures aimed at improving their quality
- Greater transparency around financial advice, including disclosure of advisers involved in establishing new SMSFs and advice fees paid
- An increase in the SMSF supervisory levy from $259 to $295, with the levy brought forward to the time the SMSF is established
- SMSFs contributing to the Compensation Scheme of Last Resort (CSLR) when a special levy is required, including in 2026/27. The Government has indicated this is expected to be no more than $20 per SMSF per leviable period.
Why are SMSFs part of the reforms?
The Shield and First Guardian collapses have increased scrutiny of the protections available across Australia’s superannuation system.
More than $100 million was invested in Shield and First Guardian through SMSFs, and SMSF-related losses have placed significant pressure on the CSLR, accounting for more than 90% of costs to date.
The Government’s response is therefore aimed at creating a safer system across the entire superannuation sector, including measures specifically targeting SMSFs.
NB: While the broad direction of the reforms has been announced, important implementation details are still to come.
1. The ATO may be able to stop rollovers into new SMSFs
The ATO will be given powers to prevent rollovers to newly established SMSFs where it is investigating concerns about fraud, financial abuse, misconduct or potential harm.
The intention is to allow the ATO to intervene before money leaves an existing super fund if there are concerns that a member is being targeted or an SMSF is being established for an inappropriate purpose.
An important question will be how the ATO identifies potentially risky rollovers and if the new process has any impact on straightforward SMSF rollovers that do not raise concerns.
2. Mandatory trustee education before an SMSF can be registered
The Government will introduce a trustee knowledge test, with mandatory trustee education required before a new SMSF can be registered.
Exactly how this requirement will operate is not yet known. For example, trustees may be required to complete an ATO-developed course or an approved SMSF trustee education course, potentially with a formal test.
What is clear is that the education requirement will need to be completed before the SMSF is registered, rather than after the fund has commenced operating.
3. SMSFs will need uniquely identifiable bank accounts
SMSFs will be required to hold uniquely identifiable bank accounts to help identify and prevent fraud.
Trustees are already expected to ensure an SMSF bank account is clearly identified as belonging to the fund. The account name should reflect the fund’s trustee structure and clearly establish the connection between the trustee and the SMSF, helping distinguish fund assets from personal or business assets.
Further detail is needed to determine if the new requirement will materially change how SMSF bank accounts are established or simply formalise existing good practice.
4. Investment strategies will need to be improved
The Government intends to improve the integrity of SMSF investment strategies by requiring a written investment strategy upfront and consulting on options to improve their quality.
An SMSF investment strategy should be a meaningful document reflecting the fund’s circumstances, investment objectives, risk profile, liquidity requirements and members’ needs.
A properly prepared SMSF should already have an investment strategy. The key issue will therefore be what the Government means by improving the quality of these strategies and if additional requirements will apply.
5. More transparency around financial advice fees
There will be greater transparency around financial advice provided in connection with newly established SMSFs.
New SMSFs will be required to disclose to the ATO any financial adviser involved in their establishment. SMSF annual financial statements will also include a dedicated line item identifying advice fees deducted during the year.
Further details are needed about exactly what information must be reported, when it must be reported and how these requirements will interact with existing disclosure and reporting obligations.
6. The SMSF supervisory levy is increasing
The annual SMSF supervisory levy paid to the ATO will increase from $259 to $295.
The levy has remained at $259 since the 2014/15 financial year. In addition to the increase, the levy will be brought forward so that it is paid when an SMSF is established.
The Government says the increase will help ensure the ATO has the resources needed to engage with new trustees and protect SMSF members from financial abuse, scams, fraud and misconduct.
7. SMSFs will contribute to the CSLR
SMSFs will be required to contribute to the Compensation Scheme of Last Resort (CSLR) in years when a special levy is required, including 2026/27.
The Government has indicated that individual SMSFs are likely to contribute no more than $20 per leviable period.
The overall SMSF sector levy will be scaled according to the relative size of the SMSF population’s assets compared with the APRA-regulated superannuation sector.
While SMSFs will therefore become part of the CSLR funding mechanism, the expected cost for individual funds is relatively small.
What should SMSF trustees do now?
Many of these reforms build on practices that well-run SMSFs should already have in place, particularly maintaining appropriate bank accounts and a meaningful investment strategy.
However, important details remain outstanding, including how the trustee knowledge test will operate, what constitutes a uniquely identifiable SMSF bank account, how the ATO will identify potentially risky rollovers and what additional requirements may apply to investment strategies and advice fee reporting.
SMSF trustees should therefore be aware of the proposed changes and watch for further detail about how the new requirements will apply.
If you are an SMSF trustee and have questions about how these reforms may affect your fund, contact our Superannaution team. We can help you understand your trustee obligations and what the changes may mean for your SMSF.
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This article is for general information only and does not constitute financial product advice. It has been prepared without taking into account any individual’s personal objectives, situation or needs. It is not intended to be a complete summary of the issues and should not be relied upon without seeking advice specific to your circumstances.
Source: Heffron, SMSF Reforms 2026: 7 Key Changes Every Trustee and Adviser Needs to Know, Natasha Panagis, Senior SMSF Education Specialist.