As we approach the end of the financial year, this month’s newsletter brings together key insights and timely reminders to help SMSF trustees stay on top of their compliance and strategic planning obligations. We begin with a practical end-of-year checklist covering important contribution deadlines, pension requirements, and record-keeping considerations ahead of 30 June.
We also look at broader policy and market influences, including why SMSFs are continuing to attract attention following recent federal budget settings.
Finally, we explore the significant High Court Bendel decision and what it means for trust distributions and SMSF structures, including both the clarity it provides and the ongoing areas where caution is still required.
George Georgiou – Managing Partner #100097434 Rick Welsh – Senior Audit Manager #100304283 Belinda D’Aspromonte – Audit Supervisor #100304550
SMSF End of Financial Year Checklist
With 30 June fast approaching, SMSF members and trustees should take time now to review key obligations and opportunities. A few timely actions can help avoid compliance issues and ensure contribution and tax strategies are fully optimised.
Contributions – act before 30 June
Ensure all contributions are received by the SMSF bank account before 30 June, allowing extra time for bank processing. Members making personal deductible contributions should also ensure valid notices of intent are lodged and acknowledged within the required timeframes, particularly before commencing any pension.
Key strategies to consider
Eligible members may be able to utilise carry-forward concessional contributions (where total super balance is under $500,000) or consider contribution reserving strategies where appropriate and permitted by the trust deed. Non-concessional contribution caps and bring-forward rules may also provide additional flexibility for after-tax contributions.
Contribution caps (2025/26)
- Concessional: $30,000
- Non-concessional: $120,000
From 1 July 2026, these will increase to $32,500 and $130,000 respectively.
Pensions and transfer balance cap
SMSFs paying pensions must ensure minimum annual pension payments are met by 30 June 2026. The general transfer balance cap will also increase from $2.0 million to $2.1 million from 1 July 2026, making pension commencement timing an important consideration.
Records and compliance
Trustees should ensure all assets are valued at market value as at 30 June, related-party arrangements are properly documented and on commercial terms, and all pension documentation is correctly completed and retained for audit purposes.
If you have any questions or would like to discuss your SMSF strategy ahead of year end, please get in touch.
Why SMSFs are looking more attractive after the latest budget
Recent federal budget settings are having an indirect but noticeable impact on the attractiveness of self-managed super funds (SMSFs), particularly as an investment vehicle for long-term wealth creation. While there were no direct changes specifically targeting SMSFs, broader tax and investment settings have shifted the relative appeal of superannuation compared to other structures.
A key theme emerging from the budget is the tightening of tax treatment outside the superannuation system. Measures affecting capital gains tax (CGT), negative gearing, and certain trust structures are viewed as increasing the tax burden or reducing flexibility for investors operating outside super. In contrast, superannuation — and by extension SMSFs — continues to benefit from concessional tax treatment and established CGT advantages within the accumulation phase.
This divergence in tax settings has led to a growing perception that SMSFs may offer a more efficient environment for holding growth-oriented assets such as shares and property. Because SMSFs are generally taxed at a lower rate than personal investment structures, they are increasingly seen as a useful vehicle for long-term wealth accumulation, particularly for investors seeking to optimise after-tax returns.
Industry commentary has also noted that these changes could encourage a gradual shift of investment capital into superannuation structures. For investors who already meet the requirements for establishing an SMSF, the combination of control, flexibility, and tax efficiency may become even more compelling under the new budget environment.
However, advisers continue to emphasise that SMSFs are not suitable for everyone. They typically require a relatively high balance to be cost-effective, along with ongoing compliance responsibilities and active management. Despite the growing appeal, SMSFs remain a structure best suited to those who are willing and able to take a hands-on approach to managing their retirement savings.
Overall, while the budget does not directly alter SMSF rules, its broader tax implications outside superannuation have strengthened the relative attractiveness of SMSFs as a long-term investment structure within Australia’s retirement system.
Key SMSF Implications from the Bendel Decision
The High Court’s decision in Commissioner of Taxation v Bendel has important implications for SMSFs and related trust structures. The Court held that an unpaid present entitlement (UPE) is not a “loan” or form of financial accommodation for the purposes of Division 7A of the Income Tax Assessment Act 1936, overturning the ATO’s long-held position. This means that UPEs owed by trusts to corporate beneficiaries will not automatically trigger deemed dividend consequences under Division 7A. The ruling provides greater certainty for taxpayers using trust structures, particularly where distributions are left unpaid within group arrangements. For SMSFs, the impact is indirect but still relevant, as many funds invest via related trusts where UPEs commonly arise.
While the decision reduces the risk of UPEs being treated as in-house assets solely on the basis of being unpaid, commentary suggests its practical impact may be more limited than initially expected, particularly where arrangements have already been structured to comply with the ATO’s previous approach. Importantly, the ruling does not remove the potential application of other integrity provisions, including section 100A, Part IVA, and Subdivision EA of Division 7A in certain circumstances. There is also an expectation that the ATO may issue updated guidance or that legislative amendments could be considered in response.
Overall, the Bendel decision is a significant development that narrows the ATO’s previous approach and provides welcome legal clarity, but SMSF trustees should continue to exercise caution and ensure trust arrangements are reviewed in light of the broader tax integrity framework.
A Message from George Georgiou
Connect SMSF Audit is built around what matters most to you, combining flexibility with a genuinely personal approach developed over more than 20 years of experience working closely with accounting and financial planning practitioners.
We understand that every firm faces different priorities, particularly in today’s environment with increasing scrutiny around KYC requirements and compliance obligations, which is why we take the time to understand your processes and support you with reliable, relationship-led audit solutions, transparent reporting, and practical guidance to help you meet both regulatory expectations and client needs with confidence.
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