2026 has been a landmark year for self-managed super, with the sector passing around 680,000 funds and $1.1 trillion in assets. It has also brought change on three fronts at once: a new tax on very large balances, evolving Investment patterns, and stepped-up regulatory enforcement. As at September 2026, trustees are navigating all three together. This overview pulls the year's key developments into a single, general-information summary.

Tax: the enacted Division 296

The most significant tax change is Division 296, now legislated in a revised form. It applies from the 2026–27 income year, commencing 1 July 2026, with the first assessment applying at 30 June 2027.

The law sets two thresholds, both indexed to inflation. Earnings attributable to balances between $3 million and $10 million are effectively taxed at 30 per cent, combining the existing 15 per cent concessional rate with a 15 per cent Division 296 component. Earnings attributable to balances above $10 million are effectively taxed at 40 per cent.

Two features are worth emphasising. First, the revised model removed the taxation of unrealised capital gains that featured in the earlier 2023 proposal; only realised earnings are captured. Second, the tax is assessed to the individual, not the fund, and individuals can elect to have the amount released from their super to pay it, a mechanism similar to Division 293.

Because the thresholds are indexed, fewer people should be drawn in by Inflation over time. Trustees with larger balances may wish to consider professional advice on how the measure applies to their situation.

Investment: how allocations are shifting

On the investment side, the sector's asset mix continues to evolve. Australian Taxation Office data shows listed shares as the largest allocation at around 27 per cent, followed by cash and term deposits at about 17 per cent, unlisted trusts at 13 per cent and non-residential property at 11 per cent.

Beneath the headline figures is a lifecycle shift. Data on funds established in FY2023 found cash and term deposits fell from 33 per cent to 16 per cent by FY2025, while property rose from 28 per cent to 35 per cent. Newer funds tend to start cash-heavy and diversify over time, with Exchange-traded funds and Australian shares popular among younger trustees. These are broad trends rather than recommendations, and the right mix for any fund depends on its strategy and circumstances.

Regulation: sharper focus on audits

The third strand is regulatory. Every SMSF must be audited each year by an ASIC-registered, independent approved auditor before lodging its annual return, a core Trustee obligation.

ASIC has intensified its oversight of that gatekeeper role. Its media release 26-170MR reported action against 36 SMSF auditors between January and June 2026, taking total FY26 enforcement actions to 64 auditors. Outcomes included disqualifications, suspensions, additional conditions and registration cancellations, with breaches targeting auditor independence, standards non-compliance, professional-development shortfalls and non-lodgement.

ASIC Commissioner Kate O'Rourke framed the stakes plainly: "SMSF auditors play a fundamental role in promoting confidence and instilling trust in the entire SMSF sector." These auditors oversee more than $1 trillion in Assets across 672,000-plus funds.

Bringing it together

For trustees, 2026 is a year in which tax, investment and compliance considerations all shifted at once. Division 296 changes the calculus for the largest balances, allocation trends reflect a maturing and younger membership, and regulators are sharpening their focus on audit quality. None of this points to a single course of action. Whether an SMSF suits an individual, and how these changes apply, depends on personal circumstances, and appropriately qualified professional advice may be appropriate.