Key Highlights

  • The government plans to require new SMSF trustees to complete education before registration.
  • The plan is still a proposal and has not become law.
  • The SMSF Association says the ATO's existing modules are built for rule-breakers.
  • Industry groups want education designed for new trustees instead.

Anyone thinking of setting up a self-managed super fund may soon have to pass through a classroom first. The federal government is developing mandatory education for new SMSF trustees, to be completed before a fund is registered. Last week the SMSF Association took its concerns to Financial Services Minister Daniel Mulino and Treasury, warning that basing the course on the ATO's existing modules, and asking for around three hours, would miss the point.

A proposal, not yet law

The education requirement is part of a package of SMSF consumer protections Dr Mulino unveiled in August. A Treasury fact sheet lists "introducing mandatory Trustee education prior to SMSF registration" among the measures.

None of it is legislated. The minister's 19 August media release said: "The Government will continue consulting with industry, consumer groups, regulators and other Stakeholders to progress legislation implementing this package." No start date has been set.

The SMSF Association, after its meeting with the minister, described the measure as "still very much in its infancy", Reports said on 3 November.

What the August package proposes

According to the Treasury fact sheet, the SMSF measures include:

  • Mandatory trustee education before a new fund is registered.
  • A power for the ATO to stop rollovers into new SMSFs "where the ATO is investigating concerns of fraud, financial abuse, misconduct or potential harm".
  • A requirement for SMSFs to have uniquely identifiable bank accounts.
  • A written Investment strategy "upfront", with consultation on ways to improve strategy quality.
  • Better visibility of returns for trustees with low balances, which Industry commentary reported would involve comparisons with APRA-regulated funds.

The fact sheet sets no minimum starting balance. It also proposes "increasing the levy for the first time since 2013, from $259 to $295", referring to the annual SMSF supervisory levy, and aligning the levy with fund establishment.

Separately, it would include all SMSFs as Tier 3 payers in the compensation scheme's levy model "in future years when a special levy is required".

The minister's release said "broader losses within the Self-Managed Superannuation System" had placed "significant strain on the Compensation Scheme of Last Resort". Industry commentary reported the government also cited the collapses of the Shield and First Guardian Master Fund, which it said affected close to 12,000 people and about $1 billion in savings.

Why the industry says the ATO course is the wrong one

The SMSF Association's concern is less about whether there should be education and more about who provides it and what it covers.

"It appears the ATO is being considered as the sole provider of the mandatory education," the Association said. It noted that Treasury's impact analysis suggested the ATO's existing education modules could be used.

Those modules, the Association said, were "designed for a different purpose – as an education direction following non-compliance". In other words, they were built for trustees who have already broken the rules, with a strong regulatory and compliance focus.

The Association argues prospective trustees need something different: material that helps them decide whether an SMSF is right for them before they commit. It says the minister himself described the measure as "basic education", so the standard should not Demand detailed technical knowledge across the whole life of a fund.

It also considers the roughly three-hour time commitment floated in Treasury's impact analysis excessive for that purpose. The Association has offered to help set the standards and outcomes, and wants more than one provider able to deliver the course.

The Treasury fact sheet does not say who would provide the education. It does refer separately to supporting "industry-led initiatives" to raise standards in the sector.

Explainer: how starting an SMSF works now, and what would change

Under current rules, anyone who becomes an SMSF trustee or director of a corporate trustee must sign the ATO's trustee declaration within 21 days. The declaration confirms they understand their duties. There is no compulsory course.

The ATO can already order trustees who breach the rules to complete an approved education course under an education direction. That is the existing education the Association says is aimed at a different audience.

Under the proposal, education would move to the front of the process. A fund would not be registered until each trustee had completed and evidenced the course.

Hypothetical example: Priya and Tom plan to set up a two-member SMSF and both act as trustees.

If the final course takes three hours, as Treasury's impact analysis floated, according to the Association, the couple would spend six hours between them before the fund could be registered.

If the proposed levy increase goes ahead, the fund would pay $295 a year instead of $259, an extra $36 a year, or $360 over a decade at that rate. The figures are illustrative and depend on the final design, which has not been settled.

How this fits with other SMSF changes

New trustees are entering a sector with plenty of moving parts. Since 1 July 2026, Payday Super has required employers to pay super with each pay cycle, which puts more weight on a fund's electronic service address and bank details being correct from day one.

The Division 296 tax on balances above $3 million also took effect from 1 July 2026. From 10 August 2026, new SMSF limited recourse borrowing arrangements have been limited to Business real property.

Those measures are already law. The education requirement and the rest of the August package are proposals.

For people weighing an SMSF, the proposal does not change anything today. Existing rules on trustee declarations, investment strategies and annual audits continue to apply.

What to watch / key dates

  • Treasury consultation on the design of the education requirement, including who delivers it, how long it takes and what it covers.
  • Any exposure draft legislation for the August package. No date has been announced.
  • The final level of the SMSF supervisory levy and when any increase would apply.
  • Investment strategy quality standards, which Industry commentary reported are still being worked through.
  • December 2026: the mid-year budget update (MYEFO), which could show costings or timing for the measures.

Until legislation is introduced and passed, the mandatory course remains a proposal whose shape could change considerably.