Peter Burgess

The SMSF Association says the newly released FY27 Initial Levy Estimate of $137.5 million confirms the pressing need for the Compensation Scheme of Last Resort (CSLR) to undergo substantial reform, particularly in relation to how the scheme is funded.

Association CEO, Peter Burgess says, “The FY27 estimate which assigns $126.9 million of the total levy to the personal financial advice sub-sector, again demonstrates the disproportionate cost borne by the financial advice profession.

“We support the principle of a last-resort compensation scheme, but it is unfair and unsustainable to expect the financial advice profession alone to pick up the cost of failed advice and products.”

Burgess also noted that the estimate has been published without incorporating any impact from potential Shield of First Guardian claims, with the Scheme itself acknowledging that a revised estimate in mid-2026 is expected to increase should those claims materialise.

“This level of uncertainty is a significant concern for the advice profession, and advisers are being asked to absorb rising and unpredictable costs stemming from failures they played no part in, and there is no indication that the frequency or scale of these failures is easing.”

With the CSLR already signalling that the FY27 revised estimate is likely to exceed the initial figure, the SMSF Association says the financial advice sector deserves greater transparency and a clear pathway towards sustainability.

Of further concern, is the sector is still waiting to hear if they will be required to pay a special levy to fund the previous levy period’s shortfall of more than $50 million, which now on reflection pales in comparison.

The SMSF Association is therefore again urging the Government to release the findings of the Treasury-led review of the CSLR, commissioned earlier this year.

“The review was established with the objective of assessing the long-term sustainability of the scheme.

“Those findings are now critical to informing the next steps, and the profession cannot continue operating under escalating levies and unresolved funding uncertainty,” Burgess says.

Peter Burgess

ASIC’s latest Review of SMSF Establishment Advice (Report 824) serves as a critical reminder of the need for the SMSF sector to maintain a strong focus on professional advice standards, says SMSF Association CEO Peter Burgess.

The report, reinforces the importance of all consumers having access to competent, specialist advice when considering whether to establish an SMSF. Burgess cautions, however, that the findings should be viewed in context.

“It’s important to recognise that ASIC’s review was based on a targeted, risk-based sample of advice files, not a random selection” Burgess said.

“The advice files examined situations were, on face value, the establishment of an SMSF appeared to be unsuitable for the client. As such, the findings are not representative of the broader quality of SMSF advice currently being provided across the sector and this perspective is important.

Burgess also noted the subjective nature of assessing whether a consumer is, or will be, worse off as a result of the advice provided, particularly when evaluating long-term retirement outcomes.

“Nonetheless, the review highlights that more work is needed to ensure all consumers have access to competent, high-quality advice when making decisions about SMSFs.”

The Association strongly supports ASIC’s previous commentary that providing SMSF advice is a specialist area of practice, requiring appropriate competencies. Burgess says. “Advisers must have the knowledge, skill, and technical competencies to provide SMSF advice confidently and responsibly.”

“We strongly encourage all professionals in this space to undertake the Association’s independent accreditation program and commit to ongoing professional development to maintain their competence over time.”

The Association also reiterated that SMSFs were not suitable for everyone and that establishing an SMSF is a significant decision requiring informed and impartial guidance.

As the sector continues to grow, now representing nearly a quarter of Australia’s $4.3 trillion superannuation system, access to consistent, high-quality and ethical advice has never been more crucial,” Burgess said.

Burgess concludes, “Our focus remains on ensuring consumers can make confident, informed decisions about their retirement savings, supported by advisers who uphold the highest professional and ethical standards – and the findings of this report only strengthen our resolve.”

Perri joins the Association after a distinguished 30-year career with AMP where he most recently served as Head of Technical Strategy, leading AMP’s TapIn technical team. A respected figure in the financial planning and SMSF communities, he brings deep expertise and a proven track record in technical leadership and adviser education.

Perri says: “I am delighted to join the Association at such a pivotal time for the sector. With significant reforms reshaping advice and retirement policy, I look forward to contributing to its mission of supporting members and advancing the SMSF sector through high-quality technical resources and guidance.”

SMSF Association CEO Peter Burgess welcomed John’s appointment, saying: “Our members and the SMSF sector will benefit immensely from John’s extensive experience, technical knowledge, and background in adviser education.”

Perri’s immediate focus will be supporting the delivery of the Association’s SMSF Specialised Advisor accreditation program and contributing to the development of high-quality technical content designed to help members meet their ongoing CPD obligations.

With enrolment numbers in our SMSF accreditation programs and the demand for SMSF technical support services continuing to grow, it’s imperative we continue to invest in our technical support capability to deliver timely, relevant and practical resources for our members.

“John is highly regarded across the financial planning profession, with a long history of presenting at industry conferences, including our National Conference.

“John’s appointment underscores our commitment to delivering high quality, best-in-class technical support and strengthening our voice in key policy debates.”

Peter Burgess

The SMSF Association has welcomed yesterday’s announcement by the Federal Government to scrap its proposal to tax unrealised superannuation capital gains.

In a statement released yesterday, the Government also announced it would index the $3 million threshold – another initiative strongly pushed by the Association.

SMSF Association CEO Peter Burgess says this announcement will send “waves of relief” through the SMSF community, especially as the proposal to tax unrealised capital gains and not index the $3 million threshold were the two most contentious issues in the legislation.

“From the outset, the Association has worked tirelessly to highlight the expansive and damaging consequences of taxing paper profits.

“Working in partnership with other organisations, we have clearly demonstrated the deleterious effect this would have on a diverse range of industries such as farming and small business and investment activities such as venture capital, so it’s extremely pleasing that the Government has listened to these concerns.”

Burgess says given the original design of this tax it has always been the Association’s strong contention that there was no easy way to address the taxation of unrealised capital gains.

“In these circumstances, the only solution was to scrap the original design and start again and we are genuinely thankful that the Government has now decided to do this.

“We now look forward to working with Treasury and the superannuation industry on alternatives that accomplishes an equitable outcome for all super fund members.”

Peter Burgess

The ATO’s long-awaited rulings on non-arm’s length income (LCR 2021/2) and contributions (TR 2010/1) have provided long-sought clarity on several critical issues, says SMSF Association CEO Peter Burgess. “These rulings are welcomed for giving certainty in areas that have been frustrating trustees and their advisers for some time.

“It is pleasing to see the ATO clarify that the non-arm’s length income (NALI) provisions will not apply in situations where an SMSF trustee has provided a service to their own fund but is unable to charge their fund a fee without breaching the Superannuation Industry (Supervision) Act 1997.”

Burgess strongly endorsed this pragmatic approach but said it was disappointing it wasn’t applied to other issues covered by LCR 2021/2.

“Valuations remain one of the most pressing. While the ATO’s existing guidelines are a useful tool for determining the value of fixed assets such as property, they provide little assistance when it comes to valuing services.

“Furthermore, the rulings fail to clarify whether using a market value within an acceptable range is sufficient, instead appearing to require trustees to justify a single value point – a rigid approach that risks leaving them exposed when commonsense flexibility is needed.”

Burgess also cited situations where the NALI provisions were enlivened by the unintended or the minor undercharging of a capital expense incurred in relation to a specific asset of the fund as another area where a more pragmatic approach was needed.

“It is difficult to comprehend that a minor undercharging of a capital expense, such as replacing a single vanity in a property owned by an SMSF on non-arm’s terms, could result in the entire capital gain on that property being taxed as NALI when it was eventually sold.

“We think the ruling was a missed opportunity for the ATO to consider safe harbour or de minimis thresholds to avoid small and often inadvertent oversights that may permanently expose all income and capital gains from an asset to the punitive 45 per cent tax rate.

“This rigid approach is disproportionate and risks punishing trustees for minor errors with life-long tax consequences,” Burgess says.

The Association also highlighted minor changes in LCR 2021/2 that acknowledged services related to an SMSF’s tax affairs that fell within section 25-5 of the Income Tax Assessment Act 1997 were not caught by NALI.

“This further clarification is welcomed, however given how commonly these services arise, we think it warranted more than a brief footnote and passing reference in the examples,” Burgess says.

The guidance around discount policies and employee share schemes has shifted from a narrow focus on trustee “influence” to a broader test of commerciality, which was welcomed by the Association.

“However, without practical examples – especially for small businesses where SMSF trustees often wear multiple hats and inevitably influence discount policies, this guidance will be difficult to apply in practice.”

“The length of the compendiums demonstrates how many issues were raised across the industry, and as we continue to work through the detail it’s obvious more work remains to be done.”

“We will continue to engage with the ATO – pushing for clearer and more practical compliance settings that give trustees and industry the confidence to operate without fear of ATO compliance action or disproportionate consequences for inadvertent or minor errors,” Burgess says.

Peter Burgess

The SMSF Association supports the Australian National Audit Office’s (ANAO) proposed performance audit of the ATO’s regulation of self-managed superannuation funds (SMSFs).

Association CEO, Peter Burgess, says the timing is right to test whether current regulatory settings strike the right balance between protecting members and maintaining the integrity of the SMSF sector.

“Notably, the ANAO last examined the ATO’s regulation of SMSFs in 2007; close to twenty years on – and now with expanded ATO compliance powers – a fresh, balanced assessment is warranted.

“The ATO has a dual role with SMSFs in that it is both the regulator and the administrator of Australia’s tax and super laws. That dual mandate should translate into timely, practical, whole-of-sector guidance, especially where super and tax intersect.

“Instead, trustees and professionals are too often left with non-binding ‘SMSF specific advice’ and slow, case-by-case private rulings – an approach that doesn’t deliver clarity at scale.”

The ANAO has been here before. In 2012 it recommended the ATO measure trustee satisfaction and improve access to SMSF guidance.

“We hope a new review will test what’s changed and whether the ATO’s current guidance model meets the needs of trustees and SMSF professionals.”

The ANAO’s audit will also include a follow-up on employer compliance with Superannuation Guarantee requirements which is critical given Payday Super is due to begin on 1 July 2026.

“We look forward to engaging with members and contributing to this review to ensure practical, industry-supporting recommendations emerge,” says Burgess.

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Peter Burgess

The SMSF Association supports the Australian National Audit Office’s (ANAO) proposed performance audit of the ATO’s regulation of self-managed superannuation funds (SMSFs).

Association CEO, Peter Burgess, says the timing is right to test whether current regulatory settings strike the right balance between protecting members and maintaining the integrity of the SMSF sector.

“Notably, the ANAO last examined the ATO’s regulation of SMSFs in 2007; close to twenty years on – and now with expanded ATO compliance powers – a fresh, balanced assessment is warranted.

“The ATO has a dual role with SMSFs in that it is both the regulator and the administrator of Australia’s tax and super laws. That dual mandate should translate into timely, practical, whole-of-sector guidance, especially where super and tax intersect.

“Instead, trustees and professionals are too often left with non-binding ‘SMSF specific advice’ and slow, case-by-case private rulings – an approach that doesn’t deliver clarity at scale.”

The ANAO has been here before. In 2012 it recommended the ATO measure trustee satisfaction and improve access to SMSF guidance.

“We hope a new review will test what’s changed and whether the ATO’s current guidance model meets the needs of trustees and SMSF professionals.”

The ANAO’s audit will also include a follow-up on employer compliance with Superannuation Guarantee requirements which is critical given Payday Super is due to begin on 1 July 2026.

“We look forward to engaging with members and contributing to this review to ensure practical, industry-supporting recommendations emerge,” says Burgess.

The post SMSF Association supports review of the ATO’s regulation of SMSFs appeared first on AdviserVoice.

Peter Burgess

The most efficient and equitable way to fund the special levy needed to meet the shortfall in consumers’ unpaid compensation claims is to spread it across all Australian Financial Complaints Authority (AFCA) sub-sectors based on their capacity to pay.

That’s a key recommendation in the SMSF Association’s submission to the Treasury consultation on the Compensation Scheme of Last Resort (CSLR): exceeding sub-sector levy caps.

While the estimated $47 million shortfall for 2025-26 is attributed to the financial advice sub-sector, Association CEO Peter Burgess said AFS licensees who are AFCA members are not responsible for this significant and concerning shortfall in potential unpaid compensation claims.

“There is no element of the current CSLR’s industry funding model that is predicated on direct industry culpability for instances or classes of misconduct.

“In these circumstances, we believe the most effective way to quickly compensate eligible claimants is to spread the cost of the special levy across all sub-sectors.

Burgess said taken at face value it may seem inequitable for a sub-sector to fund unpaid claims for another sub-sector.

“But the reality is that the current CSLR model is not equitable – each sub-sector is mandated to fund compensation for the misconduct and deliberate negligence of their peers over which they have no control nor influence.”

He said the Federal Government should also share part of the responsibility.

“The Government is the only stakeholder that has the power to enact and affect the regulatory settings that participants must operate within. Given this, we believe the Government should also be responsible for funding part of the special levy.

“While the need for a special levy was considered in the design of the CLSR as a key funding mechanism for a ‘black swan’ event’ following a large failure, it was not designed to fund the flock of black swans that we have experienced and appear to continue to experience in recent times.”

Burgess said the Association strongly supported the CSLR’s objective of giving consumers access to financial compensation where they suffered a financial loss from poor or negligent financial advice.

“Consumers should have trust and confidence that awarded compensation claims will be paid, and in a timely manner, making it imperative that the right mechanism is chosen the meet the funding shortfall.”

Peter Burgess

The SMSF Association’s annual SMSF Audit Day returns on 9 September, as a one-day virtual event  dedicated to the regulatory and compliance issues shaping  SMSF audits.  Designed for all SMSF professionals, the program explores how to work together to streamline the audit process and uphold the integrity of the sector.

SMSF Association CEO Peter Burgess says: “SMSF Audit Day recognises the essential role auditors play in ensuring that trustees comply with their obligations. Their responsibilities go far beyond ticking boxes – they are central to ensuring quality and trust in the sector. This event is curated to equip professionals with the knowledge and confidence to meet today’s complex audit challenges head on.”

SMSF auditors are under heightened scrutiny, with disqualification cases increasingly tested in the Administrative Review Tribunal (ART). Recent ART decisions – including Islam, Murphy and Sidhu – highlight gaps in sufficient and appropriate audit evidence and professional standards. During her session, Shirley Schaefer, Director at BDO Audit (SA) Pty Ltd, will unpack the lessons from these cases and showcase how to strengthen audit files.

The event will also tackle one of the fastest growing challenges for SMSF auditors: digital assets. Digital assets are no longer fringe investments in SMSFs and auditors are on the frontline of testing compliance in this fast-moving space. Shelley Banton, Head of Technical at ASF Audits, will cut through the complexity, helping all SMSF professionals identify red flags, gather the right evidence, and keep pace with regulatory expectations.

Burgess says the event is not just about technical updates – it’s about recognising that strong SMSF audits strengthen the entire sector.  “By upholding the quality and integrity of SMSF audits, we protect trustees, build confidence, and ensure the SMSF sector remains sustainable. All SMSF professionals can play a role in the audit process, and this event is designed to support them in working together.”

Up to six SMSF Audit CPD hours will be available to attendees. Registrations are now open.

Geoff Wilson

Addressing the contentious Division 296 legislation during his opening address at the SMSF Association’s 2025 Technical Summit, Association CEO Peter Burgess outlined the technical challenges with a back dated tax and why a deferred start date is necessary.

“Although the Government might argue this measure was announced two years ago, it is completely unreasonable to expect individuals to respond to legislation before it becomes law.”

“The Government has previously acknowledged the need for a long lead time to allow impacted members to consider the impact and make the necessary changes to their superannuation arrangements.”

“Adding weight to the need for a deferred start are the legacy pension amnesty rules that necessitate action being taken ahead of the start of Div 296 to avoid reserve allocations incurring this tax, and changes to 30 June total super balance calculations which, if backdated to 30 June 2025, could disrupt existing contribution strategies.”

Burgess said that while the Association was urging the Government to delay implementing this legislation, this did not alter its total opposition to the design of this tax – particularly the taxing of unrealised capital gains.

Joining Burgess on stage for the breakfast session at the start of day two of the Technical Summit, Wilson Asset Management’s Chair and Chief Investment Officer, Geoff Wilson AO endorsed the Association’s firm stance against the legislation.

Wilson, who has organised an online petition to galvanise opposition to Division 296, was steadfast in his opposition to the design of this tax and the wider implications it will have for retirement funding, investor confidence, and the role of superannuation in supporting the Australian economy.

During the breakfast, Wilson shared insights from Wilson Asset Management’s research, highlighting potential distortions to investor behaviour, capital flows, and the impact on SMSF liquidity.

Peter Burgess

It’s critically important not to draw the wrong conclusion from the recent Australian Financial Complaints Authority (AFCA) statistics relating to SMSFs, says Peter Burgess, CEO of the SMSF Association.

Addressing the Association’s Technical Summit in Sydney today, he said conflicted advice models and inappropriate advice were the “root cause” for the 95 per cent increase in SMSF complaints to AFCA in 2024-25 – not the SMSF structure itself.

“While it may be very tempting for some to jump to the conclusion that SMSFs are the problem, that’s simply not the case.

“These statistics, as well as the ballooning cost of Compensation Scheme of Last Resort (CSLR) levies, again highlight the importance of having a well-resourced regulator who can detect and act quickly on any signs of advice failure.”

On the topic of CSLR levies, Burgess said he welcomed Assistant Treasurer Daniel Mulino’s recent decision to consult with industry on potential options for implementing a special levy.

“The Association acknowledges the importance of such a scheme, but to reduce the burden on any one individual sector, we encourage Treasury and the Minister to explore ways of spreading the costs as widely as possible,” he said.

Burgess said the Association endorsed the statement by ACFA Deputy Chief Ombudsman, June Smith, who was recently quoted saying “we are well beyond black swan events and bad apples and we need to look at these systemic issues across the industry and prevent them from happening in the first place – it’s not enough to have a CLSR at the end when the harm has occurred”.

Burgess seized the opportunity in his Legislative Update: What You Need To Know address to delegates to reiterate the importance of a pragmatic ATO compliance approach following recent changes to the ATO’s pension ruling, requiring pensions failing the minimum standards to be commuted before a new pension can begin.

“This is particularly important for historical cases involving pensions that may have failed the minimum pension standards in a previous financial year and, in accordance with the original ATO view and prevailing industry practice, were not commuted before the pension was subsequently restarted the following financial year,” he said.

With the long awaited release of the updated Law Companion Ruling on the tax treatment of SMSF non-arm’s length expenses (NALE) now delayed till October 2025, Burgess urged the ATO to elaborate on the tax treatment of compliance-related expenses.

“The previous ruling implies that such expenses do not give rise to non-arm’s length income (NALI) even if incurred at non-arm’s length rates.

“Examples in the previous ruling, supported by recently issued private binding rulings, emphasise the importance of the capacity under which a service is provided. However, capacity appears irrelevant if it’s a compliance-related expense.

“Clarification is required on this important issue for the sector as many may be under the mistaken belief that any type of accounting fee incurred by the SMSF on non-arm’s length terms gives rise to non-arm’s length income,” he said.