Proposed SMSF reforms: What prospective and existing trustees should consider

Article

Published: October 14, 2026 |

Establishing an SMSF (Self-Managed Super Fund) is often associated with greater control over investment decisions, but successful SMSFs are built on more than the particular investment alone . Effective governance, oversight and decision-making processes are also important.

Trustees are responsible for overseeing the governance of the fund, documenting key decisions and ensuring the fund continues to operate in line with its’ members retirement objectives over time.

A recently announced package of proposed reforms places greater focus on these areas. While the detail is still being developed, the measures provide an opportunity for prospective and existing trustees to consider whether their current SMSF arrangements remain fit for purpose.

What reforms have been proposed?

The Government has announced plans to:

Introduce mandatory trustee education before a new SMSF can be registered
Give the ATO power to prevent rollovers into newly established SMSFs where there are concerns about fraud, financial abuse, misconduct or potential harm
Require SMSFs to maintain uniquely identifiable bank accounts
Require SMSFs to have a written investment strategy upfront and consult on ways to improve investment strategy quality
Allow the ATO to collect additional information about advisers and advice-fee arrangements
Increase the SMSF supervisory levy and align it with fund establishment
Provide greater visibility of fund performance information for some trustees.

While the final design of these measures remains subject to consultation, they point to a common objective: ensuring trustees make informed decisions and remain actively engaged in the management of their fund.

What prospective trustees should consider before establishing an SMSF

For prospective trustees, the new education requirements highlight the importance of understanding what is involved in running an SMSF before committing to one. Investment decisions are only one part of the role. Ongoing governance, administration and oversight are equally important considerations.

Before proceeding, prospective trustees should consider:

Why am I considering an SMSF?
Is an SMSF the most appropriate structure for my circumstances?
Am I prepared to remain actively involved in managing the fund?
Do I understand the responsibilities that come with being a trustee?
What professional support will I need on an ongoing basis?
How will important decisions be documented and reviewed?
Do the benefits of an SMSF outweigh the time, cost and compliance obligations involved?

While the detail of the proposed education requirements is still being developed, the reforms suggest a greater focus on ensuring people understand what is involved before establishing a fund.

Why a strong investment strategy matters

The proposed reforms also place a spotlight on investment strategies, including a requirement for SMSFs to have a written investment strategy from the outset and consultation on how the quality of those strategies can be improved.

For trustees, an investment strategy should be more than a document prepared to satisfy compliance requirements.

An effective strategy helps guide decision-making by considering matters such as:

The fund's objectives
Risk tolerance
Liquidity requirements
Member circumstances
The expected timeframe for achieving desired outcomes.

Just as importantly, investment strategies should be reviewed regularly. A strategy developed several years ago may no longer reflect changing market conditions, retirement plans or family circumstances.

Understanding the role of advice

The reform package also proposes giving the ATO greater visibility of advisers and advice-fee arrangements connected to SMSFs. It reinforces the importance of transparency around advice. Trustees should understand who is advising the fund, the scope of that advice, how advisers are remunerated and how the advice supports the fund's objectives and circumstances.

Maintaining that understanding helps trustees remain actively involved in decision-making rather than relying solely on others to manage the fund on their behalf.

What should SMSF trustees review now?

Trustees do not need to wait for the final legislation to consider whether their existing arrangements remain fit for purpose.

Areas worth considering include:

Whether the fund's investment strategy remains appropriate
Whether trustee records and governance processes are up to date
Whether advice arrangements are clearly documented and understood
Whether the fund's objectives continue to align with member needs and circumstances.

Regardless of the final form of the reforms, the proposals signal a stronger focus on governance, transparency and trustee accountability. For many trustees, now is the right time to review whether their fund arrangements are meeting those expectations.

How BDO can help

The proposed reforms provide a timely opportunity to review whether your SMSF arrangements remain aligned with your objectives, circumstances and long-term retirement goals.

If you would like assistance reviewing your fund's governance, investment strategy or trustee obligations, contact BDO's Superannuation team.

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