Why this is happening
The collapse of the Shield and First Guardian funds hit thousands of Australians. Many were talked into rolling their super out of a big fund, often into a newly set-up SMSF, and then into high-risk investments that failed. Most had never run a super fund before and didn't understand what they were signing up for.
The Government's answer is to put checks at the point an SMSF is set up. In the minister's words, the reforms are "targeted at preventing harm, not creating red tape", and most of them "reflect practices already in place" for trustees who run their funds well.
What's been proposed
| Measure | What it means |
|---|---|
| Trustee education before registration | You'd have to complete education (and possibly a knowledge test) before the ATO registers a new SMSF. |
| ATO can pause rollovers | The ATO could block money rolling into a new SMSF while it investigates suspected fraud, financial abuse or misconduct, and share data with ASIC to spot it sooner. |
| Dedicated bank account | Each SMSF would need a bank account that's uniquely identifiable as the fund's. |
| Written investment strategy at set-up | You'd need a written investment strategy from day one. The Government is also consulting on how to improve the quality of these strategies. |
| Adviser disclosure | A new SMSF would have to tell the ATO which financial adviser, if any, helped set it up. |
| Advice fees shown separately | Annual financial statements would show advice fees paid from the fund as their own line. |
| Supervisory levy | The first-year ATO levy would rise from $259 to $295 and be paid when the fund is set up. |
| Return comparisons | The ATO would help trustees, especially those with small balances, compare their fund's return with APRA-regulated funds. |
| Compensation scheme levy | SMSFs would contribute to the Compensation Scheme of Last Resort in special levy years. Reported estimates are no more than about $20 per fund. |
What isn't decided yet
- Who delivers the education. It could be an ATO course only, or approved providers. The SMSF Association has said it doesn't support one-size-fits-all training and wants tailored courses from industry providers.
- Whether there's a test. "Knowledge test" has been mentioned, but the format hasn't been set.
- How long it takes. The proposal is modelled on the ATO's existing free online course: three modules (setting up, running and winding up an SMSF) that take close to three hours.
- When it starts. No date has been announced, and the design may change after consultation.
- Existing trustees. Nothing announced so far applies to funds that already exist.
What it means for you
If you're thinking about setting up an SMSF
Don't wait for the rules. If an SMSF is right for you, you'll be glad you understood it before you started. The things worth knowing cold:
- The sole purpose test: the fund exists only to provide retirement benefits. No personal use of fund assets, ever.
- Your investment strategy: what you'll invest in and why, including diversification, liquidity and insurance for members.
- Contributions and caps: what can go in, and what happens if you go over.
- The real costs: accounting, audit, the ATO levy, investment fees and your own time. The SMSF Association has pointed out that the ATO's current modules don't cover fees and running costs, and for many people that's what decides whether an SMSF makes sense.
- Your legal duties: as a trustee you're personally responsible, even if you pay someone to help.
If you already run an SMSF
Nothing announced changes your fund yet. Two items are worth checking anyway, because they're already good practice: is your investment strategy written down and reviewed at least once a year, and does your fund have its own bank account, separate from your personal money?
Being pitched an SMSF? The Shield and First Guardian red flags
- A cold call, online quiz or "super health check" that ends in a recommendation to switch
- Pressure to roll your super over quickly
- Promises of high or guaranteed returns
- An SMSF recommended so you can buy one particular product or fund
- An adviser or "lead generator" you can't find on ASIC's Financial Advisers Register
If two or more of these sound familiar, stop and get an independent second opinion before you sign anything.
Common questions
Is the SMSF trustee test law yet?
No. It was announced on 19 August 2026 as a proposal. No legislation has been released and there's no start date.
Do existing SMSF trustees have to do the education?
Nothing announced so far applies to existing funds. The education is proposed for people setting up a new SMSF, before registration.
Who will run the trustee education?
That's still open. It could be the ATO's own course or a choice of approved providers. The SMSF Association has argued for tailored courses from industry providers.
How long will the education take?
The final design hasn't been set. The ATO's existing free course, which the proposal is modelled on, has three modules and takes close to three hours.
Will it cost more to set up an SMSF?
The first-year ATO supervisory levy is proposed to rise from $259 to $295 and be paid at set-up. Any cost for the education itself hasn't been announced; the current ATO modules are free.
Can the ATO stop my rollover into a new SMSF?
Under the proposal, yes, temporarily, while it investigates suspected fraud, financial abuse, misconduct or potential harm. How straightforward rollovers would be treated hasn't been detailed.
Run the numbers before you decide
The SMSF hub and FAQ explain how an SMSF works in plain English, and the calculators let you test your own numbers.
Updated 5 November 2026. We'll update this page as the details are released.
Sources
- SMS Trustee News — New SMSF consumer protections announced
- Heffron — SMSF reforms 2026: 7 key changes
- Mint Super — Mandatory SMSF trustee education 2026
General information only, not personal financial advice. Consider your own circumstances and get advice before setting up an SMSF.