Important SMSF changes for 2026: what every trustee needs to know

A self-managed super fund gives you control over how your retirement savings are invested, but that control comes with responsibility. Trustees must keep the fund compliant with superannuation law, maintain proper records and review the investment strategy regularly. In 2026, several rule changes land at once, and together they are the biggest shift the SMSF sector has seen in years.

Here is what is changing and what we recommend trustees do now.

Division 296: additional tax on high balances

Division 296 applies an additional 15% tax on realised earnings attributable to the portion of a member's total super balance above $3 million, and an additional 25% on the portion above $10 million. The legislation has passed, it applies to earnings from 1 July 2026, and the first assessments will follow the 2026–27 year. It will mainly affect high-net-worth members, but SMSFs that hold appreciating assets such as property or concentrated share portfolios can see balances climb past the threshold over time.

Only realised earnings are counted, such as income and realised capital gains; the earlier proposal to tax unrealised gains was dropped. Practical steps include:

• projecting each member's balance over the next five to ten years
• reviewing whether assets are held in the most appropriate structure
• considering the timing of pension commencements and withdrawals

Transfer balance cap rising to $2.1 million

The transfer balance cap limits how much you can move into the tax-free retirement (pension) phase. It indexed from $2.0 million to $2.1 million on 1 July 2026. Members who start a pension after that date can transfer up to an extra $100,000 into retirement phase. Members who have already used part of their cap may get proportional indexation.

Higher contribution caps from 1 July 2026

Higher caps give members more room to reduce taxable income through concessional contributions, and to move personal wealth into super more quickly. Confirm your available cap space before contributing, because excess contributions create their own tax problems.

Payday Super changes how often contributions arrive

From 1 July 2026, employers must pay super guarantee contributions at the same time as wages, not quarterly. For SMSFs with members who are employees, contributions will arrive weekly, fortnightly or monthly. Trustees need to be able to record and allocate those contributions promptly. SMSF members who are also business owners have their own employer obligations to prepare for. See our Payday Super guide.

The ATO's compliance focus

The ATO continues to pay close attention to:

• Related-party transactions: dealings with members and their relatives must be on arm's-length terms.
• Non-arm's-length income (NALI): income from non-commercial arrangements can be taxed at the highest marginal rate.
• Illegal early release: accessing super before a condition of release is met carries heavy penalties.
• Late lodgements: overdue annual returns can lead to penalties, auditor contravention reports and, in serious cases, trustee disqualification.

Opportunities that remain available

Carry-forward concessional contributions

If your total super balance was under $500,000 at the previous 30 June, you may be able to use unused concessional cap amounts from the past five financial years. This can be a useful way to offset a large capital gain or a high-income year.

Downsizer contributions

Members aged 55 or over who sell a home they have owned for at least ten years may contribute up to $300,000 each (up to $600,000 for a couple) from the proceeds. Downsizer contributions don't count towards the non-concessional cap.

What SMSF trustees should do now

1. Review the fund's investment strategy and document the review.
2. Check each member's contribution cap space before 30 June.
3. Monitor total super balances, especially those approaching $3 million.
4. Keep records current and lodge the annual return on time.
5. Get professional advice before making structural changes.

The SMSF sector is entering a period of significant change. Trustees who plan early will have more options available to them.

This article contains general information only and does not take your personal circumstances into account. Tax and superannuation rules change, and some measures discussed may be subject to legislation. Speak with a registered tax agent before acting.