http://www.cleardocs.com/clearlaw/superannuation/index.html ClearLaw articles ATO-compliance-priorities-what-the-regulator-is-really-worried-about <p>On 18 February 2026, the ATO, alongside ASIC, delivered a regulators update during the 2026 SMSF Association National Conference. This update outlined the ATO's current compliance priorities for SMSFs, and the areas most likely to attract increased regulatory scrutiny.</p> <p>The message was simple: the ATO is focussing its attention towards recurring compliance risks. This includes people accessing super too early, SMSF annual returns being lodged late or not at all, and concerns about how involved trustees are running their funds. The ATO also reminded trustees and advisers to prepare for upcoming changes such as Payday Super and Division 296.</p> <p>This article explains the ATO's messaging in practical terms, and highlights the importance of why clear processes and regular oversight are important for keeping an SMSF on track.</p> Tue, 24 Mar 2026 04:24:22 GMT Chris Wright, Maddocks Lawyers 1200 Advice-Matters-ASIC-Warns-of-Poor-SMSF-Practices <p>Australia’s SMSF sector has grown rapidly. SMSFs now hold almost $1 trillion in assets - about a quarter of the country’s superannuation system. This surge has drawn closer attention from ASIC, <a href="#_ftn1" name="_ftnref1">[1]</a> which warns that poor advice when setting up SMSFs can have serious consequences for clients’ retirement savings.</p> <p>In its latest review of SMSF establishment advice, ASIC examined 100 client files of Australian Financial Services licences (<strong>AFS licensees</strong>) and found that 62 failed to meet their best interests obligations, with 27 cases raising serious concerns about client detriment.</p> <p>ASIC has published a report,<a href="#_ftn2" name="_ftnref2">[2]</a> and it highlights a range of common issues, most of which highlight poor advice practices.</p> <p>This article:</p> <ul> <li>summarises ASIC’s report, and so explores what good SMSF advice should look like; and</li> <li>highlights the licensing considerations relevant to advising on SMSFs.</li> </ul> Fri, 28 Nov 2025 04:27:36 GMT Jasmine Joyce, Maddocks Lawyers 1136 Super-Under-Siege-ASIC-Flags-Spike-in-Misconduct-in-Latest-Annual-Report <p>ASIC has reported a significant rise in misconduct exploiting superannuation savings, driven by economic pressures and opportunistic business models. The regulator has observed a surge in misleading advertising, aggressive sales tactics, and inappropriate financial advice, particularly in relation to SMSFs and property investment schemes.</p> <p>These issues were highlighted in a recent Federal Court case<a href="#_ftn1" name="_ftnref1">[1]</a> in which a financial services provider was fined over $11 million for breaching conflicted remuneration laws and giving inappropriate advice to clients in relation to their superannuation.</p> <p>In response, ASIC is ramping up enforcement, issuing public warnings, and increasing scrutiny of advisers and trustees to better protect consumers and maintain the integrity of the superannuation system.</p> <p>This article provides an overview of the key trends in superannuation-related misconduct, ASIC’s enforcement priorities, and practical steps for trustees, advisers, and consumers.</p> Thu, 30 Oct 2025 03:22:21 GMT Lucy MacLachlan, Maddocks Lawyers 1103 Federal-Super-Tax-Backflip-uderstanding-the-revised-superannuation-reforms <p>Treasurer Jim Chalmers has announced a major revision to the federal government's previously proposed superannuation tax reform, aiming to address widespread criticism and secure parliamentary support. The original proposal, announced over two years ago, faced backlash for proposing a 30% tax on earnings from super balances over $3 million, including unrealised capital gains, and for failing to index the threshold, raising concerns about bracket creep.</p> <p>In a watering down of its original proposal, the government has introduced a tiered tax system for superannuation earnings, targeting high-balance accounts. Earnings from super balances exceeding $3 million will be taxed at 30%, while those above $10 million will face a 40% tax rate. Both thresholds will be indexed to inflation, helping to mitigate long-term bracket creep and maintain fairness over time.</p> <p>This article provides an overview of the updated proposal, its implications and key considerations for accountants, advisers, and SMSF trustees to be aware of.</p> Thu, 30 Oct 2025 03:14:13 GMT Jack Leeds, Maddocks Lawyers 1101 Proposed-superannuation-Tax-Increase <p>The Federal Government has proposed that from the 2025-26 financial year, individuals with super balances over $3 million will face an additional 15% tax on earnings in respect of the portion of the balance above $3 million (<strong>Proposal</strong>). This is to address the Government’s claim that super tax discounts cost the federal budget more than $50 billion in lost revenue each year, and its plan to reduce concessional treatment for high super balances, as part of the government’s effort to curb tax concessions for the wealthy.</p> <p>Approximately 80,000 Australians (around 0.5% of super account holders) are expected to be affected at first. However, the Proposal has drawn criticism from certain aspects of the media because:</p> <ul> <li>The $3 million cap won’t increase with inflation, so more people may be affected over time.</li> <li>The tax applies to both realised earnings (such as dividends) and unrealised gains (such as property value increases), which could create cash flow issues.</li> </ul> <p>Although this change is not yet law – and details are still to be ironed out - the government is expected to negotiate with the new Parliament to get it passed. This article provides an overview of what the Proposal would mean and how it could affect self-managed super funds (SMSFs) with member balances over $3 million.</p> Mon, 28 Jul 2025 01:32:05 GMT Cooper Smith, Maddocks Lawyers 936 Update-for-SMSF-Trustees-ATO-Enforcement-Actions-for-Non-Compliance <p><em>The ATO has updated its guidance on what actions it can take when a SMSF or its trustee does not follow super laws. The ATO stresses that trustees must understand their responsibilities. It also makes clear that there can be serious consequences if trustees don’t meet those responsibilities.</em></p> <p><em>This article provides a timely reminder of the resources available to SMSF trustees to ensure they know their obligations, and summarises the wide range of non-compliance actions that the ATO can draw on if an SMSF trustee breaches those obligations.</em></p> Mon, 30 Jun 2025 00:24:25 GMT Heidi Macuz and Jess Abraham, Maddocks Lawyers 905 Necessary-safeguard-for-SMSFs-and-Trusts <p>It is important for members of a self-managed superannuation fund (<b>SMSF</b>) to ensure that they have an up-to-date Enduring Power of Attorney (<b>EPOA</b>) in place to safeguard against circumstances where they become incapacitated or, can otherwise not exercise their relevant powers in respect of the SMSF themselves.</p> <p>As SMSF members are required to be the trustee of the SMSF (or a director of a corporate trustee of the SMSF) under Australian superannuation law, an EPOA can ensure that the SMSF will continue to be compliant in such circumstances as the trustee attorney can, almost seamlessly, step into the shoes of the incapacitated member as trustee or director of the corporate trustee, as the case may be. Furthermore, an EPOA will ensure that if a member becomes incapacitated the SMSF will not become dysfunctional and that an application will not need to be made to a court or tribunal to appoint a power of attorney in the absence of an EPOA.</p> <p>For individuals who are trustees of discretionary trusts, it is useful to have an EPOA for similar reasons however, it will also be important to consider the terms of the trust deed or company constitution before you appoint an attorney under an EPOA.</p> <p>This article will discuss the dangers of not having an EPOA in place for members of an SMSF and consideration for trustees of family trusts to take into account when implementing an EPOA. It will also provide an overview of the Cleardocs range of EPOA products for Victoria, New South Wales, Queensland and Western Australia.</p> Wed, 20 Nov 2024 01:11:02 GMT Tristram Feder, Maddocks Lawyers 705 NALI-updates-now-in-force-What-the-changes-to-NALI-mean-for-your-SMSF <p>Non-arm’s length income (<strong>NALI</strong>) rules are back in the spotlight as new changes clarify the treatment of non arm’s length expenses (<strong>NALE</strong>) for SMSFs.</p> <p>The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Act 2024 (<strong>Act</strong>), came into effect on 1 July 2024 and apply retrospectively from 1 July 2018.</p> <p>The Act amends the application of the NALE rules, seeking to improve their operation and remove ambiguity in relation to the treatment of such expenses.</p> <p>This article provides an overview of the changes and highlights the risks SMSF trustees need to be aware of in light of the amended NALI and NALE rules.</p> Thu, 01 Aug 2024 02:27:47 GMT Julian Smith and Sophie Edgar, Maddocks Lawyers 697 be-aware-of-legal-requirements-for-accessing-superannuation-early <p>One of the advantages of administering superannuation via a self-managed superannuation fund is increased flexibility in its management. However, it is important to remember that trustees do not have absolute discretion and that there are strict laws governing when money can be accessed from super funds.<br /> <br />The illegal withdrawal of funds from SMSFs has become an increased area of concern for the ATO which has reported that in the 2020 and 2021 financial years collectively, approximately $635 million was illegally withdrawn from SMSFs in Australia. This increase in withdrawals has been attributed to, at least in part, an increase in the establishment of SMSFs for the sole purpose of illegally accessing funds. However, the increase is also due to greater numbers of SMSF members withdrawing money for personal expenses in breach of superannuation law.<br /> <br />Illegally accessing funds has consequences beyond impacting the balance of a retirement fund: these consequences include tax implications, financial penalties and disqualification from acting as a trustee. Further, disqualified trustees are published online resulting in a permanent online record which could have collateral consequences for individuals.<br /><br />This article considers the rules surrounding accessing superannuation, the consequences for trustees that do not comply with these requirements, as well as recent trends and reasons for early access of funds.</p> Wed, 10 Jul 2024 05:52:36 GMT Stephen Dyason 696 Government-to-address-unintended-impacts-from-combining-superannuation-funds <p>Under Australian superannuation law, the merging of super funds (referred to in the industry as 'successor fund transfers') can result in additional tax for members with membership of defined benefit schemes, being paid defined benefit pensions. This occurs where a member's transfer balance is unintentionally impacted due to the original income stream being treated as ceasing and a new one commencing with the second fund. <br> <p>To address this issue, the Commonwealth government has released an exposure draft legislative instrument  which proposes to amend the transfer credit provisions of the relevant tax legislation  (<b>Proposed Amendments</b>). Under the Proposed Amendments, the transfer credit provisions would be changed so that the credit and debit flowing from a successor fund transfer (for individuals with a defined benefit income stream) are equal. The amendments are designed to ensure that the fund member remains in the position they would have been had the merger of funds not occurred.</p> Tue, 07 May 2024 01:24:04 GMT Stephen Dyason 687