superannuation and trusts

The Australian Taxation Office (ATO) emphasizes the importance of maintaining up-to-date and well-organized records for Self-Managed Super Funds (SMSFs). This practice is not only a legal requirement but also offers significant benefits, including simplifying audits and reporting, reducing administrative costs, and crucially, helping to avoid personal penalties for trustees due to poor or missing documentation. The ATO stresses that even when professionals are engaged, the ultimate responsibility for good record-keeping rests with each SMSF trustee.

Chartered Accountants ANZ has published regional news updates for its members across New Zealand. These updates cover various regions including Auckland & Northland, Central North Island, Lower North Island, and the South Island. The content highlights local events, member activities, and regional characteristics relevant to accounting professionals in these areas.

Chartered Accountants ANZ is offering a podcast series designed to support accounting professionals, particularly those in smaller firms. The "Small Firm, Big Impact" podcast delves into trends, challenges, and ideas relevant to the profession, aiming to keep practitioners future-ready with practical insights and real stories. Additionally, the "Small Firm, Big Impact Express" offers a quick, five-minute briefing on regulatory changes, compliance updates, and emerging trends. The "Acuity audio articles" series from Acuity magazine provides narrated content on business, career development, and the economy, featuring insights from strategic thought leaders and expert analysis.

The SMSF Association has issued a strong call for an immediate overhaul of the Compensation Scheme of Last Resort (CSLR), citing the newly released FY27 Initial Levy Estimate of $137.5 million as confirmation of the urgent need for reform. This follows ASIC's findings in Report 824, which the association believes underscore the critical importance of maintaining high standards in SMSF advice. The association has also focused on strengthening its technical expertise with a new Technical Manager appointment to navigate significant changes and reforms within the financial services sector.

The SMSF Association has expressed strong approval for the Federal Government's decision to abandon the proposed tax on unrealised superannuation capital gains. This announcement, made on October 13, 2025, is seen as a positive development for the sector. Additionally, the Association acknowledges that recent ATO rulings on non-arm's length income (NALI) and contributions have provided much-needed clarity, although some opportunities for improvement were identified. The SMSF Association also indicated its support for a review of the ATO's regulation of SMSFs and commented on the cost-sharing of a potential CSLR special levy.

Accountants are being cautioned to carefully manage their services when assisting clients with SMSF trust deed upgrades, ensuring they do not inadvertently provide legal advice. This comes amidst ongoing regulatory scrutiny, as highlighted by an accountant being banned for providing unlicensed SMSF setup and rollover advice. The articles also touch upon the broader landscape of financial advice, with calls for accountants to play a more significant role, while simultaneously emphasizing the importance of avoiding unlicensed activities. Furthermore, there's a focus on compliance, including AUSTRAC releasing starter kits for AML/CTF obligations and early preparation being urged for SMSF practitioners regarding upcoming AML/CTF regime changes that will now include accountants.

The Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) are intensifying their focus on Self-Managed Superannuation Fund (SMSF) auditors. Recent actions include disqualifications for failing to meet professional obligations, charges against a banned auditor for continuing to practice, and a directive for auditors to lodge ACRs in the year a breach is identified. The ATO is specifically targeting "worst-case audit files" and has set high expectations for evidence provided by auditors, emphasizing the need for rigorous procedures, particularly concerning the valuation of crypto assets. This increased regulatory pressure highlights the importance of strong audits for early detection of compliance failures.

Recent updates highlight ongoing compliance challenges within the SMSF sector. Accountants are cautioned against providing legal advice when assisting with trust deed upgrades, emphasizing the need for careful navigation of legal boundaries. Similarly, errors in Limited Recourse Borrowing Arrangement (LRBA) documents are identified as basic administrative failings that require attention. The ATO is also actively addressing unauthorized payments and potential breaches of SIS Act section 66 concerning in-house assets. Furthermore, the removal of the ATO's de minimis rule for contributions means superannuants must be more diligent with excess contribution rules. The impact of Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) laws is set to increase significantly for SMSF service providers, with AUSTRAC releasing starter kits to aid compliance. Other regulatory actions include ASIC banning an adviser for Shield-linked advice and disqualifying numerous SMSF auditors for failing to meet professional standards. The general transfer balance cap is also set to increase.

Colonial First State (CFS) has announced it will cease accepting new business applications from InterPrac financial advisers, effective February 27th. This move follows a growing trend of platforms blacklisting InterPrac, indicating concerns surrounding the financial services group.

The Financial Planning Association (FPA) has stated that concerns about codes of conduct leading to a monopoly within the financial planning industry are unfounded. The FPA's stance comes amid industry discussions regarding the implementation of such codes, suggesting that the focus is on industry-wide standards rather than the consolidation of power within a single association.

The Australian Financial Complaints Authority (AFCA) is actively engaged in approximately 500 simultaneous investigations concerning Shield and First Guardian related complaints. This indicates a substantial volume of issues requiring resolution within the financial complaints system, with AFCA working through an estimated 2,000 such complaints in total.