A coalition of 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 the 'Payday Super' reforms.
The SMSF Association, alongside Chartered Accountants Australia & New Zealand, CPA Australia, and the Institute of Public Accountants, has submitted a joint response to a consultation paper on best practice principles for superannuation retirement income solutions. Representing over 350,000 professionals, the submission aims to provide input from their members, many of whom are licensed to offer financial product advice, and to act in the broader public interest regarding these critical retirement income strategies.
The SMSF Association has submitted its feedback to the Australian Taxation Office (ATO) regarding proposed education directions for self-managed superannuation fund (SMSF) trustees who contravene the Superannuation Industry (Supervision) Act 1993. The Association supports the draft directive's aim to enhance trustee knowledge, improve compliance, and safeguard the integrity of the SMSF sector.
An SMSF specialist has indicated that the revised Division 296 tax measure will likely maintain separate tax treatments for capital gains within a superannuation fund and those attributable to individual members. This means that if an individual's superannuation balance exceeds the $3 million threshold, they will be personally liable for the tax on their portion of unrealised or realised capital gains, irrespective of any tax paid by the super fund itself on its realised gains. The tax paid by the individual in their "bucket" will not offset the tax liabilities of the super fund, and vice versa, maintaining distinct tax obligations for each entity.
The Australian federal government has identified improving the retirement phase of superannuation as a key priority. Minister for Financial Services Daniel Mulino stated that while the accumulation phase of the superannuation system is strong, the retirement phase requires development, particularly in the range and quality of product offerings. The government is exploring ways to enhance financial advice during the transition from accumulation to retirement and has released discussion papers on data collection and best practice principles for the retirement phase. Additionally, efforts are underway to streamline regulatory processes across financial services to reduce administrative costs and improve overall efficacy.
CPA Australia and several other accounting bodies, including the SMSF Association, are urging the ATO to extend transitional relief for employers facing the upcoming Payday Super reforms, slated to begin on July 1, 2026. The organizations advocate for an extended compliance period beyond the current proposed June 30, 2027, for low-risk employers, pushing it to June 30, 2028. This extension is sought to allow businesses, particularly small ones, adequate time to adapt to the significant changes in payroll, finance, and superannuation systems, including the discontinuation of the Small Business Superannuation Clearing House.