As we approach 30 June, trustees of self-managed super funds (SMSFs) should be reviewing their compliance obligations and planning opportunities ahead of year-end. This year, one of the most talked-about developments continues to be the Division 296 tax changes targeting large superannuation balances.

Below is a brief summary of what trustees should know, along with a practical EOFY checklist to help ensure your fund remains compliant and tax effective.

Division 296 Tax – Key Changes for High Superannuation Balances

The Division 296 tax legislation has now been enacted and will apply from 1 July 2026.

The new rules introduce additional tax on earnings attributable to individuals with total superannuation balances exceeding $3 million across all superannuation interests, including SMSFs, retail funds and industry funds.

Key features of Division 296

From 1 July 2026:

• earnings attributable to balances between $3 million and $10 million will effectively be taxed at 30%; and
• earnings attributable to balances above $10 million will effectively be taxed at 40%.

This is achieved through an additional Division 296 assessment issued personally to the member. The $3 million and $10 million thresholds will be indexed annually in line with CPI. The final legislation applies using a realised earnings methodology rather than taxing unrealised capital gains as had been initially proposed. This means the additional tax is based on taxable earnings recognised within the superannuation system, rather than movements in asset values that have not yet been realised.

The Division 296 liability is assessed to the individual member, not the superannuation fund itself. Members may choose to pay the liability personally or elect to release funds from superannuation through a release authority, just like Division 293 tax liabilities.

CGT reset opportunity

Eligible SMSFs may be able to access a once-off CGT cost base reset for certain assets held as at 30 June 2026 for Division 296 purposes only. If choosing to make the election, it applies to all assets held in the fund. 

This may create strategic planning opportunities for funds holding highly appreciated assets, particularly property and concentrated investment portfolios.

Trustees should obtain advice before making any election, as the decision is irrevocable.

Trustees and members approaching the Division 296 thresholds should review:

• projected total superannuation balances;
• liquidity within the fund;
• timing of capital gains events;
• pension strategies;
• asset concentration risks;
• estate planning implications; and
• whether the CGT reset election may be beneficial.

With the new rules commencing from 1 July 2026, early planning and modelling will be important to manage future tax outcomes effectively. Please contact our office to arrange a discussion with your accountant if you would like to know more about this issue.

EOFY SMSF Trustee Checklist

As 30 June approaches, trustees should ensure the following items are addressed before year-end:

1. Review Minimum Pension Payments

Ensure minimum pension payments have been withdrawn before 30 June. Failure to meet the minimum requirements may result in pension accounts losing their tax-exempt status.

Trustees should also confirm:

• pension documentation is up to date;
• bank transfers have been processed before year-end; and
• PAYG obligations for members under age 60 have been met where applicable.

You should be receiving a letter from us advising you of your minimum pension requirements shortly.

2. Check Contribution Caps

Review all concessional and non-concessional contributions made during the financial year to avoid exceeding contribution caps.

Consider:

• utilising unused concessional cap carry-forward amounts;
• timing of employer and personal deductible contributions;
• contribution reserving strategies (where appropriate); and
• eligibility for bring-forward arrangements.

Remember that contribution timing is based on when funds are received by the super fund bank account.

3. Confirm Asset Valuations

SMSF trustees are required to value fund assets at market value each year.

This is particularly important for:

• property investments;
• unlisted investments;
• cryptocurrency holdings; and
• collectibles or related-party assets.

Appropriate supporting evidence should be retained for audit purposes. We usually advise you in the cover letter if a valuation is required for the next financial year. We include complementary residential property valuations with our services and can help arrange commercial property valuations and collectible valuations at additional cost. 

4. Review Investment Strategy

Trustees should review and document their investment strategy annually.

The review should consider:

• diversification;
• liquidity and cash flow needs;
• insurance considerations for members; and
• the impact of market volatility and interest rate movements.

Where the fund holds a high concentration in a single asset class, trustees should ensure this is appropriately documented. We include a review or update of your investment strategy with our services, and you would have signed either a review or an updated strategy with your last statutory documents. 

5. Review Related-Party Transactions

Ensure all related-party transactions are conducted on arm’s length terms and appropriately documented.

Key areas to review include:

• related-party loans;
• property leases;
• expense reimbursements; and
• use of fund assets.

Breaches in this area remain a major focus for regulators. If you hold a related party asset in your fund, we will always advise you of the appropriate market value rent or interest. 

6. Check Binding Death Benefit Nominations

EOFY is a good time to review member death benefit nominations to ensure they remain valid and consistent with broader estate planning objectives. In the case of the death of a member, the surviving trustee has discretion to pay out the member's balance to whom they think is the most appropriate beneficiary, or else directly to their estate for distribution. If you would like to remove that discretion, you can make Binding Death Benefit Nominations to name your preferred beneficiary or your estate, and the trustee must abide by the nomination. 

Trustees should confirm:



• nominations are correctly executed;
• lapsing nominations have not expired; and
• nominations remain appropriate given family or financial changes.

If we do not have Binding Death Benefit Nominations for you on file, we will have mentioned this in our cover letter. If this is something you would like to put in place, please contact us to discuss it further.

7. Review Insurance Within Super

Trustees should review whether member insurance arrangements remain appropriate, including:

• life insurance;
• total and permanent disability (TPD) cover; and
• income protection policies.

Premium affordability and changing member circumstances should also be considered.

8. Verify Limited Recourse Borrowing Arrangement (LRBA) Compliance

Where the SMSF has borrowings in place, trustees should ensure:

• loan repayments are up to date;
• interest rates remain compliant with safe harbour requirements where related-party loans exist;
• property expenses have been correctly paid by the fund; and
• documentation remains current and enforceable.

9. Prepare for the SMSF Audit Early

To avoid delays with annual compliance obligations, trustees should ensure records are complete and organised ahead of the audit.

This includes:

• bank and term deposit statements;
• broker reports or dividend and holding statements;
• property documentation including rental statements, receipts for expenses and valuations;
• insurance documents for life insurance held within your SMSF; and
• contribution evidence;

Early preparation can significantly reduce year-end processing delays and administration costs. When we are ready to commence the work, we send you a checklist including all the information we require to complete your fund. 

Final Thoughts

With ongoing superannuation reform and increasing scrutiny on SMSFs, proactive year-end planning has never been more important.

Trustees should use the lead-up to 30 June as an opportunity to review their compliance position, assess strategic opportunities, and ensure all documentation is in order.

If you would like assistance reviewing your SMSF before year-end, please contact our office to arrange a discussion with one of our friendly super team members.