BDO's Quarterly Super Update

BDO's Quarterly Super Update | June 2025

Article

Published: June 25, 2025 |

Welcome to BDO’s Superannuation Quarterly Update for the June 2025 quarter, the latest news and insights from the ever-changing superannuation and self-managed superannuation fund (SMSF) landscape in Australia.

Keeping up to date with the latest developments and requirements is crucial to fulfilling your obligations and optimising your superannuation benefits. In this update, we cover important announcements from the Australian Taxation Office (ATO), SuperStream, additional upcoming lodgement dates, and a Q&A with Paul Rafton, Partner and National Leader of Superannuation at BDO.

What is the Regulator saying?

The ATO is the primary regulator in relation to SMSFs. Every month they issue a number of updates and reminders. Key updates from the ATO this quarter include:

1. Cryptocurrency & SMSFs

With a growing number of SMSFs investing in cryptocurrency assets, the ATO has issued fresh guidance to help trustees navigate the unique risks and obligations associated with these investments. The ATO is reporting a growing number of instances where SMSF trustees have lost their cryptocurrency assets due to theft, lost passwords and schemes, so keeping these assets safe is essential.

In order to ensure your SMSF cryptocurrency is safe and compliant with superannuation legislation, the ATO advises that SMSF trustees take care to:

Correctly name wallets: Ensure that your SMSF's cryptocurrency wallet is registered in the name of the fund, not in the name of an individual trustee or member.
Separate personal and fund assets: Maintain a clear distinction between personal cryptocurrency investments and those held by the SMSF to avoid issues.
Use reputable platforms: Engage with well-established, licensed cryptocurrency trading platforms.
Maintain comprehensive records: Document all transactions, including purchases, sales, and transfers of cryptocurrency assets, and ensure that you have valuation information for all cryptocurrency assets. This is crucial for calculating capital gains tax (CGT) and for audit purposes.
Protect wallet credentials: Safeguard your wallet passwords and avoid sharing them to prevent unauthorised access.
Avoid related-party transactions: Conduct all transactions at arm's length, especially when dealing with related parties, to comply with superannuation laws.

Additionally, trustees should be vigilant against scams, particularly those involving impersonators posing as ATO representatives claiming involvement in cryptocurrency tax evasion. If you suspect such a scheme, refer to the ATO's guidance on SMSF schemes or contact your BDO adviser.

2. SMSF record-keeping

As the financial year draws to a close, the ATO is reminding SMSF trustees of the critical importance of maintaining accurate and comprehensive records. Effective record-keeping not only ensures compliance with legal obligations but also facilitates smoother audits and can lead to cost savings.

Good recording keeping has a number of benefits, including:

Streamlined audit and annual return preparation: Well-maintained records make it easier for your accountant and auditor to conduct independent audits and prepare financial statements and annual returns.
Reduced administrative costs: Clear and organised documentation can help lower audit and administration expenses.
Avoidance of penalties: Proper record-keeping minimises the risk of incurring administrative penalties, which are personally payable by each individual trustee or the corporate trustee of the fund.

The ATO emphasises that even when trustees engage super or tax professionals for SMSF administration, the ultimate responsibility for record-keeping rests with the trustees themselves.

3. Minimum pension drawdown reminder

With the end of the financial year approaching, the ATO has reminded SMSF trustees to ensure that all members receiving an account-based pension are paid their minimum pension amount by 30 June. This amount is calculated by applying the relevant percentage factor based on the member's age to their pension account balance as of 1 July 2024.

Failing to meet the minimum payment requirements by the deadline can result in adverse taxation consequences for the member, including the loss of tax concessions associated with the pension.

Please contact your BDO adviser if you would like confirmation of your minimum pension payment for the financial year ending 30 June 2025.

Did you know?

Did you know that all SMSF rollovers must be processed through SuperStream?

SuperStream is an electronic system introduced by the ATO to standardise and streamline the transfer of money and data between super funds. It applies to all SMSFs, regardless of size or number of members.

SuperStream was initially introduced to assist employers in paying superannuation contributions for their employees, however since 1 October 2021, all rollovers into or out of an SMSF must be completed using SuperStream. This is a legislative requirement, and failing to follow the correct process can lead to delays, compliance breaches, or even rejected payments.

What does this mean for trustees?

If you’re planning to roll over funds, either into your SMSF, or out of your SMSF to another super fund, you must use a SuperStream compliant channel.

This means you must provide:

Your SMSF’s electronic service address (ESA)
The SMSF bank account details
The fund’s ABN and unique superannuation identifier (USI), if applicable.

Retail and industry funds require this information to validate your SMSF’s details and process the rollover. If any part of this is missing, outdated, or incorrect, the rollover will likely fail. Also note that they will more than likely require proof of your identity and your SMSF’s bank account. These information requests will vary from fund to fund, and may seem time-consuming, but they are put in place by the super fund in order to reduce the risk of fraud.

A common mistake occurs when trustees attempt to initiate a rollover by completing a paper form or contacting the ATO directly. This is no longer acceptable. The rollover must be initiated through your receiving fund, and the data must flow through the SuperStream data network. If your SMSF isn’t set up for SuperStream, you may experience significant delays or be unable to receive rollovers at all.

If you would like to roll money between your superannuation account, contact your BDO adviser for assistance with the SuperStream process.

Q & A with Paul Rafton

This month, Lisa Philip interviews Paul Rafton, National Superannuation Partner, and gains his insights on current issues and trends in the superannuation space.

Paul, we’re heading towards the end of the 2025 financial year. As we move into a new financial year, what key issues should SMSF trustees be turning their attention to right now?

“Year-end is always a critical time for SMSF trustees, and 30 June comes around quicker than many expect. There are a few key areas trustees should be prioritising.

First and foremost, ensure that minimum pension drawdowns have been made for the year. We still see instances where trustees overlook this, and unfortunately, missing the deadline can mean the pension is deemed to have ceased for tax purposes - which has real consequences, including the loss of exempt current pension income.

Secondly, now is the time to review your fund’s investment strategy. It’s not just a box ticking exercise - the strategy needs to reflect the actual investments held by the fund and should take any changes in members’ circumstances or retirement objectives into account. The ATO has reiterated that this is a focus area of ongoing compliance.

We’re also reminding clients to keep on top of their record-keeping. Good records don’t just make audits easier, they reduce accounting costs and minimise the risk of compliance breaches. This includes valuations, bank statements, trustee minutes, and proper documentation around any related-party transactions.

Finally, for funds expecting to receive contributions or rollovers before 30 June, it’s important to ensure they’re processed well before the cut-off. A payment that is delayed by the bank can push a transaction into the next financial year and impact contribution caps or bring forward arrangements, so it’s important to pay these contributions early.

In summary, trustees should treat the final weeks of the financial year as an opportunity to get ahead - not just to avoid issues, but to set the fund up for a strong start in FY26.”

The BDO team sees a wide range of SMSFs across Australia. Are there any emerging themes or risks you’re seeing at the moment?

“Yes, there are a few clear themes emerging in 2025 that trustees need to be aware of. Some of them longstanding, others a bit more recent.

It’s important for trustees to make sure that all fund assets are held in the correct name of the trustee and the SMSF. The ATO has really dialled up its messaging in this space and for good reason. The separation between personal and fund assets can become blurred. This is a fundamental breach of the sole purpose test and the separation of assets rule, and it’s something auditors are now under more pressure to report.

Trustees should make sure that they have complete and up-to-date documentation. Whether it's missing trust deeds, poorly documented investment strategies, or related-party arrangements without proper documentation. These are things that can trip up otherwise well-managed funds. The ATO has made it clear that documentation isn’t just a compliance formality - it’s the backbone of a fund’s governance.

Lastly, succession planning is becoming more of a focus, and rightly so. SMSFs with older members need to ensure that the question of who controls the fund in the event of incapacity or death is clearly documented. Having the right documentation in place, including binding death benefit nominations and enduring powers of attorney, is critical.

The common thread across all of this is governance. It’s not just about ticking boxes. Good governance protects members, ensures compliance, and ultimately gives trustees peace of mind that their retirement savings are in good hands.”

Finally, what are you watching closely for the rest of the 2025 calendar year - either from regulators, legislators, or across the broader superannuation landscape?

“There are a few key developments we’re keeping a close eye on as 2025 progresses, and top of that list is Division 296, the Government’s proposed new tax on total superannuation balances above $3 million.

We are still waiting on final legislation and guidance around this, and until this is finalised, we are urging clients to avoid knee jerk reactions.

Outside of the Division 296 tax, I think we’ll continue to see a broader conversation around the purpose of super, especially with the legislated objective now in place. This may start to influence future superannuation policy decisions.

Overall, it’s a time for trustees to stay engaged and informed - not reactive. There’s opportunity here, but it needs to be managed with care.”

Superannuation key lodgement dates

Deadline	Description
Payment of super guarantee contributions	28 days after each quarter ends e.g. SG contributions for the March 2025 quarter must be paid by 28 April 2025.
Lodgement of tax returns for newly established SMSFs	28 February 2025 (payment is also due on this date).
Lodgement of tax returns for SMSFs with income in excess of $2 million in the last income year lodged	31 March 2025 (payment is also due on this date).
Lodgement of all other SMSFs	15 May 2025 (payment is also due on this date).
Transfer Balance Account Reports (TBAR)	All SMSFs are now required to lodge TBARs on a quarterly basis, regardless of the member’s Total Super Balance. These reports are due 28 days after each quarter ends, e.g. the March 2025 quarter TBARs are due for lodgement on 28 April 2025.

Disclaimer

The information contained in this publication is purely factual in nature and does not take into account your personal objectives, financial situation or needs. It is provided as an information service only and does not constitute financial product or other professional advice and should not be relied upon as such. Before making any investment or financial decisions you should consider your particular objectives, and financial circumstance or needs. Where information relates to a particular financial product you should obtain and consider the relevant Product Disclosure Statement and obtain advice from a financial adviser before making any decision. If you do require financial advice, please contact the relevant BDO member firms in Australia who will be able to assist you in their capacity as an Australian Financial Services licensee. BDO Australia Ltd and each BDO member firm in Australia, their partners and/or directors, employees and agents do not give any warranty as to the accuracy, reliability or completeness of information contained in this publication nor do they accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it, except in so far as any liability under statute cannot be excluded.

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