On 19 August 2026, Assistant Treasurer and Minister for Financial Services Daniel Mulino announced a reform package aimed at strengthening consumer protection across superannuation, financial advice, managed investment schemes and self-managed super funds.
The SMSF measures sit inside a much broader response to the Shield and First Guardian collapses, which the government says affected almost 12,000 people and around $1 billion in retirement savings. The package also responds to pressure on the Compensation Scheme of Last Resort, where SMSF-linked complaints have accounted for more than 90% of costs to date.
For trustees, the most important starting point is this: the measures have been announced, but they are not yet law. As at the latest review on 30 August 2026, no bill had been passed to implement this SMSF package. Some details may change once draft legislation is released.
This article explains what was announced, what it may mean for existing SMSF trustees, and what should be treated as policy intent rather than a current legal rule.
For the broader 2026 rule backdrop, see What Changed for SMSFs on 1 July 2026. For scams and rollover pressure, see SMSF Scam: How the Cold Call Rollover Scam Works.
Key Takeaways: 2026 SMSF Reform Package
- The SMSF reform package was announced on 19 August 2026 after the Shield and First Guardian collapses exposed weaknesses across lead generation, advice, investment products and compensation arrangements.
- None of the SMSF-specific measures should be treated as current law until legislation is introduced, passed and commenced.
- The SMSF supervisory levy is proposed to rise from $259 to $295, with the first levy aligned to fund establishment.
- SMSFs would be included as Tier 3 levy payers in the CSLR special levy waterfall in future years when a special levy is required.
- The proposed ATO rollover power is aimed at rollovers to new SMSFs where the ATO is investigating fraud, financial abuse, misconduct or potential harm.
- The cold-calling measure targets unlicensed real-time communication about superannuation, with targeted exemptions for low-risk communications.
- The setup and transparency measures cover trustee education, unique bank accounts, adviser disclosure, advice fee reporting and written investment strategies at establishment.
- Existing trustees should focus on documentation, separation of fund money, investment strategy quality and scam resistance, without rushing into changes before the law is known.
What are the 2026 SMSF reforms?
The SMSF part of the package covers seven main measures. Some affect every fund through costs or reporting visibility. Others are directed mainly at new SMSFs and rollover-related consumer harm.
| Measure | What was announced | Primary trustee impact |
|---|---|---|
| SMSF supervisory levy | Increase from $259 to $295 and align the first levy with fund establishment | All funds pay the higher annual levy once legislated; new funds may face the cost earlier |
| CSLR special levy | Include SMSFs as Tier 3 levy payers in future special levy years | Potential flat SMSF contribution in years when the special levy waterfall reaches Tier 3 |
| ATO rollover power | Allow the ATO to prevent rollovers to new SMSFs where it is investigating fraud, financial abuse, misconduct or potential harm | Mainly affects new SMSFs and rollover situations flagged as high risk |
| Unlicensed super cold-calling | Ban unlicensed real-time communication with consumers about superannuation, with targeted exemptions | Protects members from pressure-led lead generation and switching approaches |
| Mandatory trustee education | Require education before SMSF registration | Prospective trustees and new establishments |
| Unique SMSF bank accounts | Require SMSFs to hold uniquely identifiable bank accounts | Reinforces existing ATO expectations about keeping fund money separate |
| Setup and fee transparency | Collect more information on advisers and entities involved in setup, and ongoing advice fee deductions | More visibility over establishment advice and advice fees deducted from SMSFs |
The fact sheet also says the government will support the ATO to provide greater visibility to SMSF trustees, particularly low-balance trustees, of their returns compared with members of APRA-regulated funds.
That is important context. The package is not just about scams. It also reflects a policy concern that some people are being moved into SMSFs without enough understanding of cost, risk, trustee duties or investment performance.
For the existing trustee duty framework, see the SMSF Trustee Obligations Guide. For setup context, see the SMSF Setup Guide.
SMSF reforms legislation tracker
This tracker is based on the government announcement and Treasury fact sheet. It should be read as a current-status summary, not as legislation.
| Reform measure | Announced status | Latest reviewed status |
|---|---|---|
| SMSF supervisory levy increase | Announced on 19 August 2026 | Not yet enacted as at 30 August 2026 |
| CSLR Tier 3 special levy treatment | Announced on 19 August 2026 | Not yet enacted as at 30 August 2026 |
| ATO rollover prevention power | Announced on 19 August 2026 | No bill released as at 30 August 2026 |
| Unlicensed super cold-calling ban | Announced on 19 August 2026 | Legislation and exemptions still to be settled |
| Mandatory trustee education | Announced on 19 August 2026 | Format and commencement not yet confirmed |
| Unique SMSF bank accounts | Announced on 19 August 2026 | Builds on existing ATO bank-account expectations |
| Written investment strategy upfront | Announced on 19 August 2026 | Consultation on broader strategy quality still expected |
How much is the SMSF supervisory levy increasing?
Treasury says the SMSF supervisory levy will increase from $259 to $295. It describes this as the first increase since 2013.
| Levy item | Current position | Announced position |
|---|---|---|
| Annual SMSF supervisory levy | $259 | $295 |
| Increase | - | $36 per fund |
| Collection timing for new funds | Generally paid through the first SMSF annual return process | First levy aligned with fund establishment |
| Deductibility | ATO guidance says the supervisory levy is deductible to the fund | Expected to remain deductible, but final legislation should be checked |
For an existing fund, the headline increase is modest: $36 a year before tax deductibility. At the fund’s standard 15% concessional tax rate, a deductible $36 cost has an after-tax cost of $30.60.
The larger change is timing for new funds. Aligning the first SMSF supervisory levy with fund establishment means a person setting up a fund may need to meet the levy cost earlier, rather than waiting until the first annual return cycle.
The exact mechanics for new funds will matter. Treasury has announced the policy direction, but the detailed collection rules need legislation or administrative guidance before trustees and advisers can know precisely how it will work.
For broader setup cost context, see the SMSF Costs and Fees Guide.
Will SMSFs have to pay the CSLR levy?
The government has announced that SMSFs will be included as Tier 3 levy payers in the Compensation Scheme of Last Resort special levy waterfall in future years when a special levy is required.
That does not mean every SMSF pays a CSLR amount every year. The announced position is more specific:
- SMSFs are included in the waterfall model for future special levy years.
- The SMSF sector levy would be scaled relative to SMSF assets under management compared with the broader superannuation trustees subsector.
- A flat levy amount would apply to all SMSFs if the levy reaches the SMSF tier.
- Mulino said individual SMSFs are estimated to contribute no more than $20 per leviable period.
| Cost item | Amount mentioned | Frequency | Notes |
|---|---|---|---|
| SMSF supervisory levy increase | $36 per year | Annual, once legislated | Deductible under current ATO guidance for the supervisory levy |
| CSLR SMSF contribution | Estimated no more than $20 per fund | Only in special levy years where the waterfall reaches SMSFs | Final design and administration still need legislation |
| Maximum headline increase in a special levy year | About $56 before tax effects | Not every year | The CSLR amount is not described as an annual standing levy |
The CSLR position is contentious because SMSF trustees did not cause the Shield and First Guardian failures merely by using SMSFs. The harm involved lead generation, advice, product governance and managed investment scheme failures. But the government has taken the view that SMSFs are part of the wider financial services system and should contribute to the safety net in exceptional funding years.
For the background to this debate, see CSLR SMSF Levy: The Compensation Problem Facing Australian Trustees.
Can the ATO block rollovers into an SMSF?
This is the measure most likely to be misunderstood.
Treasury’s fact sheet says the government will empower the ATO to prevent rollovers to new SMSFs where the ATO is investigating concerns of fraud, financial abuse, misconduct or potential harm.
That is narrower than saying the ATO will control what existing SMSFs can invest in. The announced power is about stopping money from being rolled into a new SMSF while serious concerns are being investigated.
The policy target is the establishment-and-rollover pathway used in harmful schemes: a person is contacted, persuaded to create an SMSF, rolled out of an APRA-regulated fund, and then pushed into a high-risk or defective investment.
For existing trustees running an established fund, the announcement does not describe a general ATO veto over investment decisions. Current investment rules still matter, including the sole purpose test, arm’s length dealings, in-house asset rules, borrowing restrictions and the requirement for an investment strategy. Those rules are covered in the SMSF Rules and Limits Reference.
The implementation risk is delay or overreach if the power is drawn too broadly. The useful version of the rule would interrupt genuine harm without turning ordinary SMSF setup and rollover administration into a slow approval process.
What does the super cold-calling ban mean for SMSF trustees?
The lead generation reforms are broader than SMSFs, but they are directly relevant to trustees.
The government has announced a ban on unlicensed real-time communication with consumers about superannuation. Treasury’s fact sheet says targeted exemptions would protect advocacy, educational and employment communications.
In practical terms, the policy is aimed at the kind of high-pressure contact that can start with a cold call, online form, comparison website or social media lead, then move into real-time persuasion about switching super or setting up an SMSF.
The announcement also includes:
- stronger consent requirements for real-time contact;
- tighter anti-hawking protections by limiting the financial advice exemption to existing client relationships;
- civil penalty provisions for breaches of the anti-hawking regime;
- obligations on licensees to take reasonable steps around lead generation compliance; and
- further consultation on data harvesting and data broking in the financial sector.
For trustees, the safest operating rule is unchanged: if the relationship began with unexpected contact about moving super, independently verify the person, the licensee, the product and the reason for the recommendation before any identity documents or rollover authorities are provided.
For the red flags, see SMSF Scam: How the Cold Call Rollover Scam Works.
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New SMSF setup and transparency rules
The remaining SMSF measures are mostly about establishment quality and visibility.
| Measure | What it means | Who is most affected |
|---|---|---|
| Mandatory trustee education | Prospective trustees would need to complete education before SMSF registration | People setting up a new SMSF |
| Uniquely identifiable bank accounts | SMSFs would be required to hold bank accounts that are identifiable to the fund | All funds, although compliant funds should already keep fund money separate |
| Adviser and entity disclosure | The ATO would collect extra information about advisers and other entities involved in establishment | New funds and professionals involved in setup |
| Advice fee deduction visibility | SMSF annual reporting would show more information about advice fees deducted during the year | Funds paying advice fees from the SMSF |
| Written investment strategy upfront | SMSFs would need a written investment strategy at establishment | New funds; existing funds may be affected by any later quality uplift |
The bank account measure should not be surprising. The ATO already says an SMSF needs a bank account in the fund’s name, unique to the SMSF, used to accept contributions and rollovers, hold investment earnings and pay fund expenses.
The investment strategy measure also builds on an existing trustee obligation. Every SMSF already needs an investment strategy that considers risk, return, diversification, liquidity, liabilities, member circumstances and insurance. The new announcement is aimed at ensuring that documentation exists from the start and that strategy quality improves.
For a detailed explanation of current strategy requirements, see SMSF Investment Strategy Requirements: What the ATO Expects and the broader SMSF Investment Strategy Guide.
How the SMSF sector has responded
The SMSF Association broadly supported the reform package, while emphasising that implementation detail will matter. It welcomed the government not proceeding with some earlier consultation options, including SMSF rollover cooling-off periods and an opt-in or opt-out CSLR model.
The Association also repeated its concern that SMSF trustees should not be treated as the cause of losses created by advice, licensee and product failures. On CSLR, its position has shifted from outright opposition to acknowledging the current compensation funding problem, while calling for a broader contribution from government and for some ASIC penalty revenue to be considered for CSLR funding.
The strongest industry concern is cumulative impact. A $36 levy increase is not large on its own. A $20 special levy in some years is not large on its own. Trustee education, bank-account proof, setup disclosure and upfront investment strategy documentation are all defensible on their own. But together, they may make SMSF establishment slower and more expensive.
That trade-off is exactly where the legislation will matter. Consumer protection can be improved without making well-advised, well-documented SMSF establishment unnecessarily difficult. Whether the final rules achieve that balance will depend on the drafting.
What happens next with the reforms?
The government still needs to turn the announcement into law. That usually means exposure drafts or consultation material, a bill, parliamentary debate, passage, royal assent and commencement rules.
As at the latest review on 30 August 2026, trustees should treat the announcement as a policy roadmap rather than a rulebook.
The key items to watch are:
- the exact wording of the ATO rollover-prevention power;
- commencement dates for the supervisory levy change and establishment timing;
- how the CSLR special levy waterfall will apply to SMSFs in practice;
- the form and provider of mandatory trustee education;
- what counts as a uniquely identifiable SMSF bank account;
- what adviser and fee information will be collected; and
- whether investment strategy quality standards are tightened for existing funds, not just new funds.
Super Informed will update this article when draft legislation or a bill is released.
What trustees should check now
No trustee needs to panic because of an announcement. But the reform package points to the areas regulators are likely to care about.
Existing trustees can use the announcement as a prompt to check:
- the fund has a unique SMSF bank account and fund money is not mixed with personal or business accounts;
- rent, dividends, interest, contributions and rollovers are paid directly into the SMSF account where required;
- the investment strategy is current, specific to the fund and consistent with the assets actually held;
- any advice fees paid from the fund are supported by clear invoices, consents and fund-purpose records;
- rollover decisions are documented and insurance consequences are considered before closing an old account;
- trustees can explain their duties, not just rely on an administrator; and
- any unsolicited contact about super is independently verified before information is shared.
The rental-income point is a common example. If an SMSF owns an investment property, rent should be paid into the SMSF bank account, not into a member’s personal account first. Even if the money is later transferred to the fund, routing fund income through personal accounts can create separation-of-assets and audit problems.
For audit preparation, see Your 2025-26 SMSF Audit Checklist. For annual timing, use the SMSF Compliance Calendar.
Frequently Asked Questions
Are the 2026 SMSF reforms law yet?
No. As at 27 August 2026, the reforms had been announced by government but had not yet been enacted. Treasury says the government will continue consulting with stakeholders to progress legislation. The final obligations may change before commencement.
What is changing with the SMSF supervisory levy?
The government has announced that the levy will rise from $259 to $295 and that the first SMSF supervisory levy will be aligned with fund establishment. The increase is $36 per fund before tax effects.
Will every SMSF pay a CSLR levy every year?
That is not what the announcement says. SMSFs would be included as Tier 3 levy payers in future years when a CSLR special levy is required and the waterfall model reaches that tier. Mulino said individual SMSFs are estimated to contribute no more than $20 per leviable period.
Can the ATO stop an existing SMSF from buying an investment?
The announced ATO power is about preventing rollovers to new SMSFs where the ATO is investigating concerns of fraud, financial abuse, misconduct or potential harm. It is not described as a general approval power over investments inside established SMSFs.
What does the cold-calling ban cover?
The government has announced a ban on unlicensed real-time communication with consumers about superannuation, with targeted exemptions for advocacy, educational and employment communications. The final boundaries will depend on legislation.
Do existing SMSFs need a written investment strategy?
Yes. Existing law already requires SMSF trustees to formulate and give effect to an investment strategy. The reform package would require a written strategy upfront at establishment and includes consultation on improving strategy quality across the sector.
Can SMSF income go into a personal account first?
No. SMSF money should be kept separate from personal and business finances. The ATO says the fund bank account should be unique to the SMSF and used for contributions, rollovers, investment earnings, expenses and liabilities.