In his National Press Club address, Mulino said the Government is implementing a crackdown on harmful lead generation practices, and will also ban unlicensed real-time communication about superannuation, limit the anti-hawking exemption for financial advice to existing client relationships and strengthen penalties for breaches of anti-hawking laws.\u202f<\/p>\n
\u201cBut a safer system must protect consumers across the entire superannuation sector. Over $100 million was invested into Shield and First Guardian through SMSFs and SMSF losses have already placed immense strain on the CSLR, accounting for more than 90 per cent of costs to date,\u201d Mulino said.\u202f\u202f<\/p>\n
\u00a0\u201cThat is why we will give the ATO a new power to prevent rollovers into SMSFs where there is a well-founded suspicion of consumer harm, and we will strengthen data sharing between ASIC and the ATO so concerning patterns of rollover activity can be identified earlier.\u201d<\/p>\n
As part of this, Mulino said the Government will now \u202frequire SMSFs to maintain uniquely identifiable bank accounts to help identify fraud risks and will introduce basic trustee knowledge requirements to ensure trustees understand the obligations they are assuming before taking direct responsibility for their retirement savings.\u202f\u202f<\/p>\n
\u00a0\u201cThese reforms will build on and reinforce work already underway within the sector, including the SMSF Association\u2019s efforts to uplift trustee education and support better informed decision-making,\u201d he said.<\/p>\n
\u00a0\u201cWe will also align the first SMSF ATO supervisory levy with fund establishment and increase the levy for the first time since 2013, to help ensure the ATO is appropriately resourced to engage with new trustees, identify emerging risks, and intervene when members may be at risk of financial harm.\u201d<\/p>\n
He continued there will be improved \u201ctransparency\u201d around SMSF outcomes by requiring newly established SMSFs to disclose any financial adviser involved in their establishment, and by adding a dedicated line item to SMSF annual financial statements identifying advice fees deducted during the year.\u202f\u202f<\/p>\n
\u00a0\u201cImportantly, these reforms are targeted at preventing harm, not creating red tape for Australians who choose to manage their retirement savings through an SMSF. For the vast majority of trustees, they reflect practices already in place, allowing us to better identify at-risk consumers and interrupt harmful practices,\u201d he said.\u00a0<\/p>\n
Furthermore, Mulino said for 2026-27, the Government will apply the waterfall model outlined in consultation to the $170.3 million special levy attributed to the financial advice subsector.<\/p>\n
\u00a0\u201cBut applying the waterfall model doesn\u2019t mean that sub-sectors are automatically going to pay their maximum cap. The legislation requires me to consider the viability of affected sectors and the broader interests of the financial system. That is exactly what Treasury is analysing now, in consultation with stakeholders, before I make any final decision,\u201d he said.<\/p>\n
\u00a0\u201cIn particular, I recognise that financial advice is a sector made up largely of small businesses. I want advisers to know that I recognise the immense value they provide to Australians, I have heard the concerns they have raised throughout this process, and I am committed to working with the sector to ensure we arrive at an outcome that is sustainable, proportionate and fit for purpose.\u201d<\/p>\n
\u00a0Mulino said SMSFs will contribute to special levies in future years where a special levy is required.<\/p>\n
\u00a0\u201cSMSFs are a legitimate and important part of Australia\u2019s retirement income system. They are also part of the financial services ecosystem that benefits from the existence of a compensation framework,\u201d he said.<\/p>\n
\u00a0\u201cThis is a balanced approach under which it is estimated that individual SMSFs are likely to contribute no more than $20 per leviable period, with an overall sector levy scaled according to the relative size of SMSF population assets compared to APRA-regulated sector assets.<\/p>\n
\u00a0\u201cAlternative models, including excluding SMSFs from the scheme altogether, would have created significant gaps in consumer protection while adding complexity and administrative costs.\u201d<\/p>\n
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