If you manage your own super through a Self-Managed Super Fund (SMSF), the start of the financial year is a good time to review your fund and make sure everything is in order. While many changes happen behind the scenes, there are a few important areas worth reviewing to help keep your fund compliant and your retirement plans on track.
Here's a practical checklist of the key areas to consider.
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Review Your Pension Arrangements
From 1 July 2026, the general Transfer Balance Cap increases from $2.0 million to $2.1 million.
If you're already receiving a pension from your super, you may be entitled to an increase in your personal cap. The ATO works this out automatically based on information it has received, so it's important your fund's reporting is up to date.
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Review Your Contribution Strategy
Contribution limits have increased for the 2026–27 financial year:
- Concessional (before-tax) contributions increase to $32,500
- Non-concessional (after-tax) contributions increase to $130,000
If you're planning to make larger contributions this year, it's worth checking your eligibility first to avoid exceeding the limits.
The amount you can contribute will depend on factors such as your age, total super balance at 30 June 2026 and whether you've previously used the bring-forward rules (for Non-Concessional Contributions).
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Check Employer Contribution Arrangements
Changes to SuperStream and the introduction of the New Payments Platform (NPP) mean SMSFs need to be ready to receive employer contributions under the updated system.
If your employer contributes to your SMSF, make sure:
- your Fund’s bank account is able to receive payments through the NPP.
- any requests from your employer to verify your fund are responded to promptly.
- your accountant or SMSF administrator knows employer contributions will be made.
Keeping your SMSF records up to date also helps avoid delays in receiving contributions.
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Review Division 296 Tax Considerations
Division 296 tax is an additional personal tax levied on the proportion of taxable super earnings above the individual’s large super balance thresholds and commenced on 1 July 2026.
The key thresholds and tax rates are below:
The additional tax applies only to the proportion of earnings attributable to balances above each threshold. Both thresholds are indexed to CPI in set increments.
The two key considerations are as follows:
- CGT cost base adjustment option
SMSFs may elect a one-off cost base reset at 30 June 2026 (for Division 296 purposes) that involves resetting all SMSF asset cost bases to their market values recorded at 30 June 2026. It is important to ensure that all SMSF assets are valued correctly and review the unrealised gain/loss position to assist with the decision to make the election.
- Transitional year and withdrawing from super (if eligible)
If the individual is eligible to make withdrawals from super, they can do so prior to 1 July 2027 to reduce their Total Super Balance (TSB). A transitional rule applies in the 2026/27 Year which only measures TSB at the end of the financial year for the calculation of Division 296 tax (i.e. 30 June 2027). If TSB is below $3 million as at 30 June 2027, Division 296 tax is not payable for the 2026/27 Year.
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Complete Some Annual Housekeeping
The start of a new financial year is also a good time to review the administration of your SMSF.
Consider whether:
- your trust deed is still appropriate
- your trustee structure remains suitable
- any required changes have been reported to the relevant authorities
- your records are complete and up to date.
Good record keeping makes annual compliance much easier and helps avoid issues if the ATO requests information.
Planning Ahead
A little planning at the start of the financial year can help avoid compliance issues and make managing your SMSF much easier throughout the year.
If you'd like to review your fund, discuss any of these changes, or make sure you're making the most of the opportunities available, please contact us.