SMSF Association Media Release
The sector enjoyed a breakout year in 2024 with total assets invested in SMSFs reaching the $1 trillion milestone, near record numbers of new funds established, and some important legislative reforms achieved. Delivering his customarily legislative update at the 2025 SMSF Association National Conference in Melbourne today, CEO Peter Burgess cited these three factors as just some of the reasons to be optimistic about the future of the sector.
“The growing number of younger individuals establishing SMSFs is a sign of a healthy and dynamic sector. The intergenerational transfer of wealth combined with technological advancements that make it easier for people to establish and manage their own fund, will continue to drive strong growth in fund establishments.
“We have also successfully stalled – for now – the proposed Division 296 tax, a damaging new tax, which would have significant consequences not only for the SMSF sector but the broader community.
“Since the proposal was first mooted in early 2023, we have fought long and hard against this tax, and we’ve certainly played an important role in galvanising cross bench opposition to this tax.”
“Far be it from me to give advice to government or Treasury, but it’s time to take this damaging legislation off the table, listen to industry concerns and work with industry on a solution to the problem the government is trying to solve.”
Burgess told delegates that the sector still faced challenges, not the least being the “alarming” number of disqualified trustees and the “scourge” of illegal early access that has
the potential to threaten the fabric of the sector. “We’re often asked what the sector can do to address these issues. While we don’t have all the answers, what we do know is that the SMSF sector cannot solve these issues alone.
“It’s a $1 trillion sector – a significant part of the financial services industry. What that signifies to me is that the financial services industry, in partnership with government and the regulators, needs to work together to address these issues.
“A good example of the need for a collaborative approach are the policy settings that currently make it difficult for professionals in our sector to do their job. If we work together – the theme of this conference – we can be confident the issues holding this sector back will not pose the same risk they do today.”
Burgess cited the newly registered legacy pension amnesty regulations and the non-arm’s length income (NALI) legislation as two positive developments in the sector in recent times.
“The legacy regulations are a perfect illustration of the importance of specialist SMSF advice with practitioners needed to work through a range of different issues with clients, including social security and transfer balance cap implications.
“In relation to the NALI legislation, lessening the severity of the rules relating to NALI was greatly welcomed by the sector.
“However, for services provided personally by SMSF trustees, confusion and uncertainty remains around the distinction between services provided in the capacity of a trustee versus their professional capacity.
“In particular, the treatment of services provided by an SMSF trustee to their own fund that do not constitute a trustee duty yet also fail to satisfy the four limbs of SIS Act section 17B, which would otherwise permit the trustee to be remunerated.
“The Association is calling on the ATO to adopt a pragmatic approach to the application of the NALI rules in these situations and to the retrospective application of the Commissioner’s new interpretation of what constitutes a contribution.”
Burgess said the $1 trillion milestone underscored the confidence Australians placed in SMSFs and was a powerful testament to the value of “choice” and the benefits of this super sector.
“The achievement of this milestone is due, in no small part, to the emergence of a dedicated cohort of SMSF professionals, our specialist members, who over the past two decades, have stepped up and attained our specialist adviser and auditor designations and committed themselves to ongoing professional development.”
Burgess concluded by saying 2024 had also been a good year for the Association – membership was growing and our balance sheet is stronger than ever. “We are more prepared than ever to represent this sector, lift SMSF advice competency standards, and stand up for the rights of individuals to be aspirational and have genuine choice when it comes to their superannuation.”