A coalition of prominent Australian professional accounting, bookkeeping, tax, financial advice, and superannuation bodies has submitted a joint response to the Australian Taxation Office (ATO) regarding its draft Practical Compliance Guideline (PCG) 2025/D5. This guideline outlines the ATO's compliance approach for the first year of 'payday super' obligations.
Four leading professional accounting bodies – Chartered Accountants Australia & New Zealand (CA ANZ), CPA Australia, the Institute of Public Accountants, and the SMSF Association – have jointly submitted feedback on guidance for best practice principles related to superannuation retirement income solutions. Representing a significant portion of financial professionals in Australia and New Zealand, these organizations aim to contribute to the development of effective retirement income strategies. The submission signifies a collaborative effort by these bodies to influence the regulatory landscape and ensure sound practices are adopted for superannuation and retirement income products. Their collective voice, representing over 350,000 professionals, underscores the importance of this consultation in shaping the future of retirement income solutions for Australians.
The SMSF Association has submitted its views to the Australian Taxation Office (ATO) regarding draft guidelines for issuing education directives to Self-Managed Superannuation Fund (SMSF) trustees who contravene the Superannuation Industry (Supervision) Act 1993 (PSLA). The Association supports the ATO's initiative to enhance trustee knowledge, improve compliance, and safeguard the integrity of the SMSF sector through these directives.
SMSF specialists indicate that the revised Division 296 tax will continue to treat capital gains within a super fund and those attributable to individual members as separate tax liabilities. This means members exceeding the $3 million threshold will be personally liable for any Division 296 tax on their share of unrealised gains, and this tax paid individually will not offset any tax payable by the super fund on realised capital gains from the same assets. The tax remains a 'two-bucket' system where the fund and individual tax obligations do not intersect.
The Australian federal government is placing a high priority on enhancing the retirement phase of superannuation, recognizing it as a less developed area compared to the accumulation phase. Minister for Financial Services Daniel Mulino indicated a need for a wider and higher quality range of retirement products and emphasized the crucial role of financial advice in guiding individuals through this transition. To this end, the government has released discussion papers on improving retirement phase data collection and establishing best practice principles with industry stakeholders. Concurrently, the government is committed to streamlining regulatory processes across the financial services industry to reduce administrative costs and improve overall efficacy.
A coalition of accounting bodies, including CPA Australia and the SMSF Association, is advocating for an extended transitional relief period for employers facing the upcoming Payday Super reforms, set to commence on July 1, 2026. The organizations highlight the significant systemic changes required across payroll, finance, and superannuation systems, particularly for small businesses that rely on third-party providers. They are requesting the ATO to push back the compliance deadline from June 30, 2027, to June 30, 2028, for low-risk employers to allow adequate time for adaptation, including migrating away from the Small Business Superannuation Clearing House.
The article raises concerns about the potential inclusion of Self-Managed Super Funds (SMSFs) in the 2027 Compensation for Older Australians Levy (CSLR). Natasha Panagis from the Institute of Financial Professionals Australia highlighted that ATO data suggests the Division 296 tax might affect a broader range of SMSFs than initially marketed. This is prompting further scrutiny and calls for clarity from the financial sector.
Auditor Naz Randeria from Reliance Auditing Services has expressed significant concern that Division 296, a tax related to superannuation, may be applied more broadly than initially presented, potentially including Self-Managed Super Funds (SMSFs). Randeria suggests that the current interpretation of Div 296 'crosses a line' in superannuation policy that has not been previously breached. This raises worries about the potential implications and expanded reach of this levy on SMSFs, particularly concerning reports of its inclusion in 2027.
Naz Randeria, director of Reliance Auditing Services, has expressed concerns that the proposed Division 296 tax for superannuation is not as narrow as it is being presented. According to Randeria, this tax "crosses a line" in superannuation policy that has not been previously breached.