superannuation and trusts

New guidelines have been released to address an unintended consequence of the legacy pension amnesty period that could have resulted in asset-test exemption being lost for certain pensions, even if they were not commuted. The Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025 allows the Secretary to determine that these legacy pensions remain asset-test exempt if the only reason for the loss of exemption was the availability of commutation under the amnesty. This, combined with a previous determination to waive debts arising from actual commutations, aims to provide greater clarity and avoid inappropriate debt clawbacks for social security recipients impacted by the legacy pension amnesty.

The SMSF Association is calling for an immediate overhaul of the Compensation Scheme of Last Resort (CSLR) funding model, citing the newly released FY27 initial levy estimate of $137.5 million. The association highlights that the personal financial advice sub-sector is disproportionately bearing the cost, with $126.9 million assigned to it. CEO Peter Burgess argues it's unfair and unsustainable for the financial advice profession to solely cover the expenses of failed advice and products, especially as the levy estimate is expected to increase with potential claims and a significant shortfall from a previous levy period remains unfunded.

The SMSF Association has appointed John Perri as its new Technical Manager to bolster its technical support capabilities amidst significant reforms in the superannuation sector. Perri, who brings 30 years of experience from AMP, will focus on enhancing the SMSF Specialised Advisor accreditation program and developing technical content to help members meet their continuing professional development (CPD) obligations. This appointment reflects the Association's commitment to providing high-quality technical resources and guidance to its members and strengthening its advocacy in policy debates.

Accounting bodies, including CPA Australia and the SMSF Association, are urging the ATO to extend transitional relief for employers implementing the Payday Super reforms, set to take effect on July 1, 2026. They highlight the significant operational changes required across payroll, finance, and superannuation systems, particularly for small businesses, and advocate for an extended compliance period from June 30, 2027, to June 30, 2028. This extension aims to provide employers with adequate time to adapt to the new requirements, which include significant system overhauls and potential changes in clearing house providers.

Superannuation legal specialist Michael Hallinan suggests Self-Managed Super Funds (SMSFs) are well-suited for minor children who receive Super Guarantee (SG) contributions from part-time work. Recent changes to super law (effective July 1, 2022) removed the $450 monthly minimum threshold, meaning children under 18 who work any hours are now eligible for SG contributions. Hallinan highlights that an SMSF offers controlled administration costs, shared expenses, and a proportional cost structure, making it a potentially more cost-effective option for accumulating small super balances compared to public offer funds. While a minor can join an SMSF if permitted by the trust deed, they gain independence at age 18 and can choose to remain in the SMSF (becoming a trustee or director) or roll over their funds.

The Super Members Council (SMC) is advocating for stronger consumer protections surrounding superannuation switching, with a particular focus on Self-Managed Super Funds (SMSFs). They propose tracking and flagging rollovers into SMSFs from retail or industry funds, and support ASIC's suggestion for cooling-off periods during switching to allow for advice. The SMC also recommends reintroducing initiatives like 'Investing Between the Flags' and creating alerts for consumers moving funds outside APRA's regulated system, highlighting the risks involved. Data-driven surveillance to monitor high rates of switching and SMSF establishment is also suggested to identify and prevent consumer harm.

The draft legislation regarding superannuation reforms is expected to create distinct "winners and losers" within the superannuation system. Peter Burgess, CEO of the SMSF Association, acknowledged that the government had limited options in releasing the draft legislation, indicating potential complexities and varied impacts on different stakeholders. The article's context suggests these changes are imminent due to an upcoming education deadline.

Draft legislation concerning the superannuation system has been released, with the CEO of the SMSF Association, Peter Burgess, highlighting that the government faced limited options in its release. The new laws are anticipated to create distinct advantages and disadvantages for different entities within the superannuation landscape.

This article emphasizes the effectiveness of a consistent and steady approach to investing for building long-term wealth. It argues that complex or volatile strategies are often less successful than a disciplined, buy-and-hold methodology. The piece implicitly supports this approach within the context of superannuation, suggesting that a "boring" yet reliable investment strategy is key to achieving substantial retirement savings.

The article highlights the potential for Self-Managed Superannuation Funds (SMSFs) to generate income by renting out investment properties through platforms like Airbnb. It suggests that Airbnb offers a flexible alternative to long-term leases for SMSF-owned real estate, allowing for shorter-term rental agreements. However, the article strongly advises thorough research before pursuing this strategy.