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Published 13 June 2025
At the 2025 SMSF Association National Conference, ATO Deputy Commissioner Emma Rosenzweig delivered a keynote address on the state of the SMSF sector. With over 625,000 funds managing more than $1 trillion in assets—around a quarter of Australia’s total superannuation—Rosenzweig outlined how the sector’s scale is driving increased scrutiny and higher expectations from regulators, government, and the community.
Rosenzweig acknowledged that the SMSF sector continues to demonstrate strong compliance. Between 96–97% of lodging SMSFs each year have no auditor-reported contraventions. However, there was a 10% increase in contraventions in the 2024 income year, and a further rise of almost 13% in the first half of the current year.
The most common breaches include:
While these percentages might seem small, in a $1 trillion sector, the dollar value at risk is significant.
The ATO’s latest estimate for illegal access—either directly or via loans—sits at $481.8 million. The ATO has observed some instances where illegal access was disguised as loans using backdated documentation—raising serious compliance and potential fraud concerns. In 2023–24, the ATO disqualified 660 trustees and amended tax assessments in 350 cases.
Consequences include:
Loans to members also remain a serious issue. In the 2022 income year, $231.7 million was loaned in breach of SIS rules—a 10% increase from the previous year.
As of early 2025, around 85,000 SMSFs had not lodged their 2023 return, and 54,000 were still outstanding for 2022. Another 4,600 newly established funds had not lodged their first return. ATO data shows a strong correlation between non-lodgment and illegal early access, particularly in newly established funds.
Consequences include:
Some trustees are ignoring release authorities and commutation notices. This results in:
From July 2026, employers will be required to pay super at the same time as wages. SMSFs must ensure they are set up to receive contributions more frequently and accurately. This includes:
The ATO is improving SuperStream error messaging and validations to reduce failed contributions due to inactive or incorrect ESA details.
The ATO has seen increased identity fraud and scams targeting SMSFs. These include fake fund setups, early access schemes, and outright theft of member money. Alerts are issued when changes occur to fund details, and trustees should treat these seriously.
Scammers also promote high-return investment schemes and encourage illegal early access. Trustees are encouraged to remain cautious—if it sounds too good to be true, it likely is.
The ATO’s promoter penalty laws now apply more broadly, with a longer enforcement window (6 years) and a significantly increased maximum penalty. The upper limit has risen from $7.8 million to $780 million in total penalties, depending on the scale and nature of the scheme. These provisions apply to anyone who benefits from promoting a scheme that contravenes ATO guidance or superannuation law.
Tax agents must now comply with updated obligations under the TPB Code of Professional Conduct, including:
While these updates may seem strict, the ATO notes that most professionals are already meeting these standards. The changes are intended to raise the bar on consistent, ethical conduct.
The ATO now offers a free online trustee course that includes knowledge checks and automatic reporting to the ATO. This course satisfies the requirement for a trustee to complete an approved course when directed to educate—and is strongly recommended for all trustees.
Rosenzweig closed by reinforcing that managing your own super is a privilege, not a right. With over $1 trillion in assets under management, the ATO will continue to regulate the sector firmly—supporting those who comply, and holding to account those who don’t. The long-term credibility of SMSFs relies on all participants acting with integrity, diligence, and care.