Here we go again. We have only a short time left to the end of the 2026 financial year to get our SMSF in order and ensure we are making the most of the strategies available to us. Here is a checklist of the most important issues that you should address with your advisers before the year-end.
It’s been another busy year and I have not had as much time to put this together so if you find an error or have a strategy to add then please let me know. Links were working at the time of writing.
Warnings before we begin:
Know your Own Data: You need to check your personal super balances across all your accounts, contribution limits, total Super Balance and Transfer Balance caps and tax position before implementing any of these strategies as your own particular circumstances may warrant alternative options.
Confirm your annual return lodgement status:
Log in to ATO online services and confirm your most recent SMSF annual return for 2025FY has been lodged and shows as
processed (near the deadline now). As of December 2025, approximately 93,000 funds had one or more overdue returns. A fund with an overdue return faces penalties, potential interest charges, and likely removal from the Super Fund Lookup register. This can interrupt employer contributions and serious consequences under Pay Day Super requirements for your employer .
The Checklist
1. It’s all about timing with contributions
If you are making a contribution, the funds must hit the super fund’s bank account by the close of business on 30 June. Some clearing houses hold on to money for up to 14 days before presenting them to the super fund. Some Retail and Industry funds are asking for funds at least to be contributed by the 18th-19th June!
In addition, pension payments must leave the account by the close of business unless paid by cheque in which case the cheques must be presented within a few days of the EOFY. There must have been sufficient funds in the bank account to support the payment of the cheques on 30 June but a cheque should only be your very last-minute option! You can also ask your adviser or administrator about a Promissory Note if time is against you but funds are ready.
So, for SMSFs get your payments in the fund by Monday 22nd June or earlier to be sure (yes I’m Irish) as the 30th is a Tuesday this year. This is even more important if using a clearing house for contributions.
2. Review your Concessional Contributions (CC) options including Unused Carry Forward Limits
The 2025–26 concessional cap is $30,000. This includes all employer contributions, salary sacrifice, and any
personal deductible contributions. Log in to ATO online services via myGov and confirm your year-to-date total
before making any further contributions.
And remember that you have the ability to make concessional contributions up to age 67 even if not working and to 75 if you meet the Work Test . This is important for those who have retired but may have sold a property or shares and triggered a large capital gain during the year. Do not not exceed your limit unless you have Unused Carried Forward Concessional limits and Total Super Balance under $500K as of last 01 July 2025.
This current 5 year period for Unused Concessional Contributions applies from 2020-21 so effectively, this means an individual can make up to $172,500 of CCs in a single financial year by utilising unapplied unused CC caps since 1 July 2019 and this years limit. Guidance on how to check your Unused Carried Forward Concessional limits via MyGov records available here. ..
This is the last year to use the 2020-21 unused Carried Forward Concessional Caps as they fall outside the 5 year rolling period from 30 June 2026.
Beware that once your Income including Salary, Investment income, Employer SGC, Personal Concessional Contributions goes over $250,000 you will be subject to Div 293 Tax
TIP: The Super Guarantee now remains at 12% but the Concessional limit will rise to $32,500 from 1 July 2026. Re-evaluate your contribution plans for 2026-27
3. Review plans for Non-Concessional Contributions (NCC) options
The 2025–26 non-concessional cap is $120,000. You can only make non-concessional contributions if your Total
Super Balance was below $2.0 million at 30 June 2025.
From 1 July 2022 the NCC contribution rules changed and currently the age limit of 75 (28 days after the end of the month your turn 75) applies to NCCs (that is, from after-tax money) without meeting the work test. Check out ATO superannuation contribution guidance.
NCCs are an opportunity to move investments into super and out of a personal, company or trust names.
For those couples where one has a higher balance that may be affected by the proposed Division 296 Tax, it is important to review you option to even-up spouse balances and maximise super in pension phase up to age 75. For couples where one spouse has exhausted their transfer balance cap and has excess amounts in accumulation or above $3m or even the $10m threshold, they are able to withdraw from the higher balance and recontribute to the other spouse who has transfer balance cap space available to commence a retirement phase income stream. This can increase the tax efficiency of the couple’s retirement assets as more of their savings are in the tax-free pension phase environment and may help minimise Div 296 Tax.
TIP 1: If you have considerable additional funds to add to contribution then maybe contribute up to $120,000 before June 30 and then you may be able to contribute up to $390,000 after 1 July to maximise contributions.
TIP 2: From 1 July 2025 the Non-Concessional Cap will rise to $130,000 per year or $390,000 under the 3 Year Bring Forward Rule.
4. Recontribution Strategies
Consider doing the drawdown before 30 June 2026 so that your Transfer Balance Cap and Total Super Balance on 1 July 2026 gets some additional space with the rise in the TBAR and TSB full limits to $2.1m. Note that if you had and existing pension(s) at 30 June 2025 your current limit will be anywhere between $1.6m and $2.1m after 1 July (Frustrating for Advisers! so help by providing them your My Gov Super records)
You can also make your tax components more tax free by using recontribution strategies. SMSF members can cash out their existing super and re-contribute (subject to their contribution caps) them back in to the fund to help reduce tax payable from any super death benefits left to non-tax dependants. From 1 July 2022 you can do this until they turn age 75 (contribution to be made with 28 days after the end of the month you turn 75).
5. Downsizer contributions
If you have sold your home in the last year and you are over 55, consider eligibility for downsizer contributions of up to $300,000 for each member.
From 1 jan 2023, the eligibility age to make downsizer contributions into superannuation was reduced from 60 to 55 years of age. All other eligibility criteria remain unchanged, allowing individuals to make a one-off, post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. These contributions will continue not to count towards non-concessional contribution caps.
The $300,000 downsizer limit (or $600,000 for a couple) and the $360,000 bring forward NCC cap allow up to $660,000 in one year contributions for a single person and $1,320,000 for a couple subject to their contributions caps.
PLEASE BE CAREFUL AS THE DOWNSIZER IS A ONCE ONLY STRATEGY AND IF YOU WOULD BENEFIT MORE IN OLDER YEARS USING THE STRATEGY THEN MAXIMISE NCCs FIRST.
6. Calculate co-contributions
Check your eligibility for the co-contribution, it’s a good way to boost your super. The amounts differ based on your income and personal super contributions, so use the super co-contribution calculator. Is your spouse on maternity or paternity leave? See if they could benefit from this strategy to keep their balance growing. If you have moved to part-time work, this may boost your super.
7. Examine spouse contributions
If your spouse has assessable income plus reportable fringe benefits totalling less than $37,000 for the full $540 tax offset or up to $40,000 for a partial offset, then consider making a spouse contribution. Check out the ATO guidance here.
You can implement this strategy up to age 75 as a Spouse Contribution is treated as a NCC in their account (and therefore counted towards your spouse’s NCC cap).
8. Give notice of intent to claim a deduction for contributions first
If you are planning to claim a tax deduction for personal concessional contributions, you must have a valid ‘notice of intent to claim or vary a deduction’ (NAT 71121).
A notice must be made before you commence a pension or split to a spouse. Many people like to start pension in June and avoid having to take a minimum pension in that financial year but make sure you have claimed your tax deduction first. The same notice requirement applies if you plan to take a lump sum withdrawal from your fund.
9. Consider contributions splitting to your spouse
Consider splitting contributions with your spouse, especially if:
- your family has one main income earner with a substantially higher balance or
- if there is an age difference where you can get funds into pension phase earlier or
- if you can improve your eligibility for concession cards or age pension by retaining funds in superannuation in the younger spouse’s name.
This is a simple no-cost strategy I recommend for everyone here.
Remember, any spouse contribution is counted towards your spouse’s NCC cap.
10. Act early on off-market share transfers
If you want to move any personal shareholdings ETFs. or Managed Funds into super (as a contribution) you should act early. The contract is only valid once the broker or fund manager receives a fully-valid Off Market Transfer form so timing in June is critical. There are likely to be brokerage costs involved. Some fund managers only price weekly/monthly/quarterly so check first. For unlisted managed funds you will also need a new Account Application with the Off Market Transfer form.
11. Review options on pension payments
Ensure you take the standard minimum pension at your age-based rate. If a pension member has already taken pension payments of equal to or greater than the the minimum amount, they are not required to take any further pension payments before 30 June 2025. For transition to retirement pensions, ensure you have not taken more than 10% of your opening account balance this financial year.
Minimum annual payments for pensions.
| Age at 1 July | 2025FY – Standard Minimum % withdrawal |
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 or older | 14% |
If a pension member has already taken a minimum pension for the year, they cannot change the payment but they can get organised for 2026/27. No, you can’t sneak a payment back into the SMSF bank account unless you treat to as a new contribution!
If you need more than the minimum pension payments for living expenses then it may be a good strategy for amounts above the minimum to be treated as either:
- a partial lump commutation sum rather than as a pension payment. This would create a debit against the pension member’s Transfer Balance Account (TBA). Please discuss this with your accountant and adviser first as all funds now have to report these quarterly to the ATO.
- for those with both pension and accumulation accounts, take the excess as a lump sum from the accumulation account to preserve as much in tax-exempt pension phase as possible.
Failure to pay minimum pensions just got a lot more costly
SMSF trustees, accountants and financial advisers should take note of significant changes to pension commencement rules that came into effect on 1 July 2025. These changes impact how pensions are treated for tax purposes if a minimum pension is missed and could have serious implications for retirement planning strategies. Read more detail here
12. Check your documents on reversionary pensions
A reversionary pension to your spouse will provide them with up to 12 months to get their financial affairs organised before making a final decision on how to manage your death benefit. In NSW this may avoid issues with Binding Death Nominations and the Notional Estate (see Benz v Armstrong; Benz v Armstrong; Benz v Armstrong – 2022 NSWSC)
You should review your pension documentation and check if you have nominated a reversionary pension in the context of your family situation. This is especially important with blended families and children from previous marriages that may contest your current spouse’s rights to your assets. Also consider reversionary pensions for dependent disabled children.
The reversionary pension has become more important with the application of the $1.6-$2.1m million Transfer Balance Cap (TBC) limit to pension phase.
Tip: If you have opted for a nomination instead then check the existing Binding Death Benefit Nominations (many expire after 3 years in older deeds) and look to upgrade to a Non-Lapsing Binding Death Benefit Nomination. Check your Deed allows for this first.
Tip 2: Under Division 296 Tax, the Reversionary Beneficiary’s Total Super Balance (TSB) increases immediately, potentially triggering a 15% tax if their TSB exceeds $3 million or up to 25% if above $10m at financial year-end. Beneficiaries must weigh the cost of this new tax against the benefits of tax-exempt pension income, while noting that converting to a non-reversionary pension requires careful review of the specific SMSF deed. Ultimately, this decision depends on the Reversionary Beneficiary’s individual financial position and broader estate planning goals.
13. Review Capital Gains Tax on each investment (For every one)
Review any capital gains made during the year and over the term you have held the asset and consider disposing of investments with unrealised losses to offset the gains made. If in pension phase, then consider triggering some capital gains regularly to avoid building up an unrealised gain that may be at risk to legislation changes.
Consider the Division 296 CGT cost base election for 30 June 2026
For SMSF trustees, the election to reset the cost base of assets to their 30 June 2026 market value is a critical one-time opportunity to shield pre-existing capital gains from the Division 296 tax.
Key Planning Considerations
- “All-or-Nothing” Election:
- The choice applies to every capital gains tax (CGT) asset held by the fund on 30 June 2026.
- Trustees cannot pick and choose; they must reset all assets or none.
- Irrevocability and Purpose:
- The election is irrevocable once made.
- This reset applies exclusively for Division 296 purposes. The fund’s standard CGT and income tax calculations still use the original acquisition cost.
- Impact of Unrealised Losses:
- If an asset’s market value on 30 June 2026 is lower than its original cost, resetting will lock in a lower cost base for Division 296 purposes.
- This could result in a larger Division 296 capital gain in the future if the asset recovers and is later sold.
Read more about this option on our LinkedIn post here
14. Collate records of all asset movements and decisions
Ensure all the fund’s activities have been appropriately documented with minutes, and that all copies of all statements, valuations and schedules are on file for your accountant, administrator and auditor.
The ATO has now beefed up its requirements for what needs to be detailed in the SMSF Investment Strategy so review your investment strategy and ensure all investments have been made in accordance with it and the SMSF Trust Deed, including insurances for members. See my article on this subject here.
15. Arrange market valuations (beware of the proposed Div 296 Tax Sting)
Regulations now require assets to be valued at market value each year, including property and collectibles. For more information refer to ATO’s publication Valuation guidelines for SMSFs.
On collectibles, play by the new rules that came into place on 1 July 2016 or remove collectibles from your SMSF.
Tip: The ATO is targeting audit compliance this year on Property Valuations in SMSFs as we approach the implementation of the proposed Division 296 Tax from 1 July 2026.
Tip 2: It would be better to ensure your properties truly match the market value on 1 July 2026 than to have a large rise in value recorded in future years that will trigger higher Div 296 Tax.
Tip 3: Do a 3 year deal with your Valuer!! SMSF Auditors generally accept a full, independent property valuation every three years, provided that in the intervening years you can supply objective and supportable evidence to demonstrate that the property is still recorded at market value.
This evidence must be supplied to the auditor annually and can include:
- Title Searches: An annual title search indicating no new charges or liens on the property
- Comparable Sales: Evidence of recent sales for similar properties in the same area.
- Independent Appraisals: A “kerbside” appraisal or market appraisal from a licensed real estate agent.
- Rate Notices: Council or water rates notices (if consistent with other evidence).
- Rental Statements: Agent reports showing rental income for the year, which can be used to justify market value through a rental yield analysis.
16. Check the ownership of all investments.
Make sure the assets of the fund are held in the name of the trustees (including a corporate trustee) on behalf of the fund. Carefully check any online accounts and ensure all SMSF assets are separate from your other assets.
We recommend a corporate trustee to all clients. This might be a good time to change, as explained in this article on Why SMSFs should have a corporate trustee. If you have previously moved to a Corporate Trustee then double check all accounts/investments were changed to the name of this trustee.
17. Review Estate Planning and loss of mental capacity strategies
Review any Binding Death Benefit Nominations (BDBN) to ensure they are valid, consider Non-Lapsing Nominations and check the wording matches that required by the Trust Deed. Ensure it still accords with your wishes.
Also ensure you have appropriate Enduring Powers of Attorney (EPOA) in place to allow someone to step into your place as trustee in the event of illness, mental incapacity or death. Ensure that your Power of Attorney is valid for the state you are in living in now if you have retired interstate. This article explains how it can all go wrong
Tip: Check your Trust Deed and the details of the rules. For example, did you know you cannot leave money to stepchildren via a BDBN if their birth-parent has pre-deceased you?
18. Review any SMSF loan arrangements
Have you provided special terms (low or no interest rates, capitalisation of interest etc) on a related party loan? Review your loan agreement and see if you need to amend your loan.
Have you made all the payments on your internal or third-party loans, have you looked at options on prepaying interest or fixing the rates while low?
Have you made sure all payments in regards to Limited Recourse Borrowing Arrangements (LRBA) for the year were made through the SMSF trustee? If you bought a property using borrowing, has the Holding Trust been stamped by your state’s Office of State Revenue? For Related Party LRBA’s the Variable interest rate is currently 8.95% (will be updated for 2027FY in late May)
19. Ensure SuperStream obligations are met and be ready for PayDay Super from 1 July 2026
For super funds that receive employer contributions, the ATO is now enforcing the use of SuperStream, a system whereby super contributions data is made electronically and from 1 July 2026 the Pay Day Super legislation will apply
Payday Super affects SMSFs as well. Is your SMSF Bank account NPP Enabled? Read more here
All funds should be able to receive the contributions same day using NPP and data electronically and you should obtain an Electronic Service Address (ESA) to receive contribution information.
If you change jobs your new employers may ask SMSF members for their ESA, ABN and bank account details.
20. Ensure you are meeting your Quarterly TBAR Reporting deadlines
IF you are in Pension Phase then you need to be checking in with your accountant/administrator Quarterly to ensure TBAR reporting is up to date.
All SMSFs are required to report quarterly. This means you must report the event that affects the members transfer balance within 28 days after the end of the quarter in which the event occurs.
Example: All unreported events that occurred between 1 April and 30 June 2026 must be reported by 28 October 2026. This means you cannot report at the same time as your SMSF annual return (SAR) for the 2023-24 income year. More info here
21. ASIC fee increased from 1 July 2026 and how to avoid the sting with a discount
ASIC is increasing fees by $2 for the annual review of a special purpose SMSF trustee company $65 to $67. The Government is moving gradually to a “user pays” model so expect increases to accelerate in future years. Before 30 June, for $457 you can pre-pay the company fees for 10 years and lock in current prices with a decent discount. There is a remittance form linked here.
Why would you do this? – THE PENALTIES IF YOU MISS RENEWAL!!!
- Late Payment Fee (Under 1 month): $98.
- Late Payment Fee (Over 1 month): $411.
22. Legacy retirement product conversions (Seek Expert Advice)
On 6 December 2024, regulations were released to allow the commutation of legacy pensions for a limited 5-year period. There is considerable additional detail in this feature so consult an adviser if you are affected, especially to ensure you do not lose other entitlements such as the age pension.
The regulations allow a five-year timeframe for lifetime or life expectancy pensions and MLIS to be commuted.
You have the following options:
▪ withdraw the funds from superannuation (all these clients have previously met a condition of release) ▪ rollover the amount to accumulation phase, or
▪ use the funds to commence an account based pension (if transfer balance cap space is available).
Under this measure, if a lifetime or life expectancy pension is commuted, any reserve supporting that income stream is also added to the commutation value. However, no amount from the reserve is counted tow
OTHER ISSUES
23. HAS NOT PASSED: Relaxing residency requirements for SMSFs– Labor Government has failed to move on this issue. It appears lost in the ether!
SMSFs and small APRA funds still do not have relaxed residency requirements through the extension of the central management and control test safe harbour from two to five years as the LNP government failed to pass it before the last election and Labor have put it on the backburner. The active member test was also to be removed, allowing members who are temporarily absent to continue to contribute to their SMSF. So if you are heading overseas on an extended secondment or to live please review your options and here is a great guide to your options
24. Improved the Home Equity Access Scheme – Highlighting Social security benefits for you or your parents
Is your SMSF / Super balance getting low and you want to preserve as much as you can for later in your life?
The Home Equity Access Scheme formerly called The Pension Loan Scheme is now up and running. The Government introduced a No Negative Equity Guarantee for HEAS loans and allow people access to a capped advance lump sum payment.
- No negative equity guarantee – Borrowers under the HEAS, or their estate, will not owe more than the market value of their property, in the rare circumstances where their accrued HEAS debt exceeds their property value. This brings the HEAS in line with private sector reverse mortgages.
- Immediate access to lump sums under the HEAS – Eligible people will be able to access up to two lump sum advances in any 12-month period, up to a total value of 50% of the maximum annual rate of Age Pension Current Maximums (effective 20 March 2026):
- Singles: $15,611.70 (based on a maximum annual pension rate of approximately $31,223.40).
- Couples (Combined): $23,535.20 (based on a maximum annual pension rate of approximately $47,070.40).
25. Careful if replacing Income Protection or TPD Insurance (Total Permanent Disability)
Have you reviewed your insurances inside and outside of super? Don’t forget to check your current TPD policies owned by the fund with an own occupation definition as the rules changed a few years ago. So be careful about replacing an existing policy as you may not be able to obtain this same cover inside super again.
There were major changes to Income Protection insurance in 2021 so be very careful about switching insurer unless costs have blown out as new cover is often vastly inferior to current covers. Read more here before switching cover.
26. Large one-off Personal income or gain – Bring forward Concessional Contributions
For those who may have a large taxable income this year (large bonus or property sale) and are expecting a lower taxable next year you should consider a contribution allocation strategy to maximise deductions for the current financial year by bringing some or all of your 2026FY limit forward to this year. This strategy is also known as a “Contributions Reserving” strategy but the ATO are not fans of Reserves so best to avoid that wording! Just call is an Allocated Contributions Holding Account. See my article on this strategy here.
27. Providing Proof of Crypto Currency Holdings as of 30 June and now Exchanges must have AFSL
As of April 2026, cryptocurrency exchanges and custody platforms in Australia that meet specific asset thresholds are required to hold an Australian Financial Services Licence (AFSL) within 12 months. You should be using an exchange that is set up for SMSF accounts. They should provide a Tax Summary but it may cost extra. Some exchanges are now partnering with Specialised services that are experts in Australian to offer tax reports that meet Australian Audit requirements.
The auditor will also want to verify holdings by checking:
- An exchange account is set up in the name of the fund
- Wallet purchased using funds from the SMSFs cash account
Cold Wallet Audit management extra step: For annual audit purposes, take a screenshot of the assets held in your Ledger wallet (e.g. via the Ledger ‘Live’ App or similar) on 30 June 2025 and also on the day you submit your paperwork and email this to the tax agent at tax time.
29. NALE/NALI applies in the 2026FY (in the sense the ATO are going to enforce it) – please ensure that if members perform services for their SMSF which is their ‘day job’ (ie. Accounting work for Accountants, Building and repair work for tradies, etc) that these are charged at the appropriate commercial rate that they charge their clients. A good article explaining this in more detail here from ASF Audits
Don’t leave it until after 30 June, review your Self Managed Super Fund now and seek advice if in doubt about any matter.
Some ideas for 1 July 2026
28. Check your Salary Sacrifice or Personal Contributions as Concessional Cap rises to $32,500 and Non-Concessional Cap to $130,000
The superannuation guarantee (SG) rate will remain the same but the Concessional Cap will rise from $30,000 to $32,500. You’ll need to use the new rate to calculate how much of your $30,000 concessional cap will be available to salary sacrifice or make personal deductible contributions.
The annual non-concessional contribution (NCC) cap is set to rise to $130,000 (up from $120,000 in 2025–26) due to indexation. The three-year bring-forward cap will consequently increase to $390,000, allowing higher after-tax contributions depending on total super balance
29. Check your SMSF Trust Deed is current
If your SMSF’s trust deed was last updated before 2015, it may not support current pension strategies, contribution rules, or binding death benefit nomination formats. Legislative changes since then mean older deeds can inadvertently restrict what your fund can legally do. Consider an update every 3-5 years.
30. Check your Investment Strategy is ready for Audit and 2027FY
As mentioned earlier The ATO has now beefed up its requirements for what needs to be detailed in the SMSF Investment Strategy so review your investment strategy and ensure all investments have been made in accordance with it and the SMSF Trust Deed, including insurances for members. See my article on this subject here.
Warning: Don’t jump into the implementation of any strategy without checking your personal circumstances first.
Are you looking for an advisor that will keep you up to date and provide guidance and tips like in this blog? then why now contact our team at our Castle Hill or Windsor office in Northwest Sydney to arrange a one-on-one consultation, just click the Schedule Now button up on the left to find the appointment options.
Please consider passing on this article to family or friends. Pay it forward!
Oh and please leave a comment or a “like” so I don’t feel I am talking in a vacuum!
Liam Shorte B.Bus FSSA™ AFP
Financial Planner & Fellow SMSF Specialist Advisor™
Tel: 02 9899 3693, Mobile: 0413 936 299
- PO Box 6002 NORWEST NSW 2153
- Suite 40, 8 Victoria Ave, Castle Hill NSW 2154
- Suite 4, 1 Dight St., Windsor NSW 2756
Corporate Authorised Representative of Viridian Advisory Pty Ltd ABN 34 605 438 042, AFSL 476223
This information has been prepared without taking into account your objectives, financial situation, or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation, and needs. This website provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such.
The SMSF Coach 