SMSF Reforms 2026: 7 Key Changes Every Trustee and Adviser Needs to Know

The Assistant Treasurer and Minister for Financial Services, Daniel Mulino, has announced a range of new reforms affecting super, including SMSFs, following the collapse of Shield and First Guardian.

There’s a lot in the announcement, including measures aimed at strengthening protections across the super, advice and investment ecosystem, as well as changes to the Compensation Scheme of Last Resort (CSLR).

But putting those broader reforms to one side, what does it all mean for SMSFs?

The good news is that, at least from what we know so far, the SMSF changes appear to be less onerous than some of the reforms that had been speculated about.

Of course, the devil will be in the detail. The Government’s fact sheet gives us the broad direction, but there are plenty of questions still to be answered.

So, what has actually been announced and when can we expect to know more?

Why are SMSFs part of the reforms? 

The Shield and First Guardian collapses have put the spotlight firmly on the protections available across the super system.

More than $100 million was invested in Shield and First Guardian through SMSFs, and losses relating to SMSFs have already 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 super sector, including measures specifically targeted at SMSFs.

What SMSF reforms have been announced? 

The Government’s fact sheet is fairly light on detail at this stage, but there are seven key measures SMSF trustees and their advisers need to be aware of.

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 behind this is pretty easy to understand. If there are concerns that a member is being targeted or that an SMSF is being established for an inappropriate purpose, the ATO should have the ability to intervene before money leaves the existing super fund.

The practical question is how this will work.

Anyone who has helped a client establish an SMSF and roll their benefits out of an APRA-regulated fund will know that the process can already take some time. It will be interesting to see how the ATO identifies potentially risky rollovers and, importantly, whether the new process has any impact on straightforward rollovers that don't raise concerns.

Hopefully, a targeted approach means genuine SMSF establishments aren't caught up in additional red tape. 

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.

This is one reform that is difficult to argue against. Better-informed trustees should mean better-run SMSFs, and improving trustee knowledge has always been something we at Heffron are passionate about.

The big question is what the education requirement will actually look like.

Will trustees be required to complete an ATO-developed course? Will they be able to choose from a range of approved SMSF trustee education courses? Will there be a formal test at the end?

We don't know yet.

What we do know is that the education will need to happen before the SMSF is registered, rather than relying on trustees to develop their knowledge after the fund is already up and running.

3. SMSFs will need uniquely identifiable bank accounts

Another proposed reform is the requirement for SMSFs to hold uniquely identifiable bank accounts to help identify and prevent fraud.

At first glance, this sounds fairly straightforward. But it raises an interesting question: how different will the new requirement be from what SMSF trustees are already expected to do?

Currently, trustees need to ensure that the SMSF's bank account is clearly identified as belonging to the fund. The account name should reflect the fund's trustee structure and make the connection between the trustee and the SMSF clear. This helps distinguish the fund's assets from the trustee's personal or business assets.

So, what exactly will a "uniquely identifiable" SMSF bank account look like under the new rules?

We'll need to wait for more detail before we can determine whether this represents a significant change to the way SMSF bank accounts are currently established or simply formalises existing good practice.

4. Investment strategies will need to be improved

The Government also wants to improve the integrity of SMSF investment strategies by requiring a written investment strategy upfront and consulting on options to improve the quality of investment strategies.

Again, the underlying principle makes sense.

An investment strategy isn't supposed to be something that gets dusted off once a year simply to satisfy the auditor. It should be a meaningful document that reflects the fund's circumstances, investment objectives, risk profile, liquidity requirements and the needs of its members.

In that sense, requiring an investment strategy upfront shouldn’t be seen as an additional layer of red tape. A properly prepared SMSF should already have one.

The more interesting part will be what the Government means by "uplifting the quality" of investment strategies and whether any additional requirements are introduced.

5. More transparency around financial advice fees

There will also 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. In addition, SMSF annual financial statements will include a dedicated line item identifying advice fees deducted during the year.

This is another area where the detail will matter.

For advisers, trustees and accountants, it will be important to understand exactly what information needs to be reported, when it needs to be reported and how the new requirements will interact with existing disclosure and reporting obligations.

The broader objective, however, is clear. There will be greater visibility over the advice being provided to SMSF members and the fees being paid for that advice.

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 been $259 since the 2014/15 financial year, so this isn't exactly a surprise given the passage of time. The bigger change is that the levy will be brought forward so that it is paid when the SMSF is established.

No one likes another fee, but the Government says the increase will help ensure the ATO has the resources it needs to engage with new trustees and protect SMSF members from financial abuse, scams, fraud and misconduct.

For advisers establishing new SMSFs, the timing of the payment will be the more practical change to consider.

7. SMSFs will contribute to the CSLR

And finally, there is a change that SMSFs are unlikely to be particularly excited about.

SMSFs will be required to contribute to the CSLR in years where 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 sector.

So, while SMSFs will now be part of the funding mechanism, the individual impact is expected to be relatively small.

Final thoughts

For now, the SMSF reforms announced by the Government look reasonably sensible.

Some formalise practices that good SMSF trustees and their advisers should already be following. Others, such as the trustee education requirement and additional protections around rollovers, could provide a genuine improvement to the integrity of the sector.

But, as always, the devil will be in the detail.

We still need to understand how the trustee knowledge test will work, what constitutes a uniquely identifiable bank account, how the ATO will identify potentially risky rollovers and exactly what additional requirements will apply to investment strategies and advice fee reporting.

We'll be watching the detail as it emerges and, importantly, considering what these changes mean in practice for SMSF advisers and their clients.

We'll also be covering the reforms and what they mean for SMSFs in more detail at our Virtual Super Intensive Day. Our in-person events have now sold out, but virtual tickets are, of course, still available if you’d like to join us from wherever you are.