What’s changing for SMSFs this year?

Changes to self managed super funds in 2025-26

Every financial year brings a fresh set of rules, updates and compliance requirements for self-managed super funds (SMSFs). The 2025–26 financial year is no exception, with changes to contribution caps, tax considerations and the ATO’s compliance focus.

For trustees, staying across these updates is vital. Here’s a clear rundown of what’s changed, what to watch out for, and what you can do to keep your fund on track.

Overview of SMSFs rule changes 2025-26

The key updates for SMSFs in the 2025–26 financial year include:

• Increases to concessional and non-concessional contribution caps.

• Indexation of the general transfer balance cap.

• Ongoing discussion around the proposed Division 296 “$3 million super tax”.

• The ATO’s renewed focus on valuation accuracy, residency rules and scams targeting SMSF trustees.

While not every trustee will be directly impacted, these updates highlight why it’s important to review your strategy and make sure your SMSF remains compliant.

Contribution caps for 2025–26

From 1 July 2024, contribution caps increased due to indexation:

• Concessional contributions cap: $30,000 (up from $27,500 in 2023–24).

• Non-concessional contributions cap: $120,000 (up from $110,000 in 2023–24).

These limits apply for the 2025–26 financial year. 

Remember:

• Concessional contributions include employer contributions, salary sacrifice and personal contributions claimed as a tax deduction.

• Non-concessional contributions are after-tax contributions made without claiming a deduction.

• If your total super balance is less than $500,000, you may be eligible to use the carry-forward concessional contributions rule to “catch up” unused cap amounts from the past five years.

Read more on the ATO contribution caps here.

Superannuation tax updates

The tax rate for SMSFs remains at 15% on investment earnings, with a lower rate of 10% on capital gains for assets held longer than 12 months.

Other updates to note:

• Division 296 tax – The proposed additional 15% tax on super balances above $3 million has not yet been legislated. Originally intended to apply from 1 July 2025 (with the first calculation date of 30 June 2026), its timeline is now uncertain following the 2025 election. Trustees with higher balances should keep an eye on this proposal, but don’t need to take action yet.

• Transfer balance cap – The general transfer balance cap, which limits how much can be transferred into a tax-free retirement account, is indexed periodically. For 2025–26, the cap remains at $1.9 million.

ATO compliance focus for 2025–26

Each year, the ATO outlines priority areas for SMSF compliance. For 2025–26, trustees should be mindful of:

• Accurate valuations – Particularly for property, crypto, and unlisted assets. The ATO continues to emphasise that valuations must be current, objective and well-documented.

• Residency rules – Funds must continue to meet the “central management and control” test. This is especially important for trustees spending extended time overseas.

• Scams and fraud – The ATO has warned of increased scams targeting SMSF trustees. Staying vigilant and verifying requests for personal or fund details is essential.

• Regulatory reporting – Timely and accurate lodgement of annual returns, audits and transfer balance account reports (TBAR) remains a top priority.

What trustees should do next

Here’s a simple checklist to help you stay on track this financial year:

• Review your contribution strategy – are you taking advantage of the higher caps?

• Check your total super balance to see if carry-forward contributions apply.

• Stay informed on the Division 296 tax proposal if your balance is approaching $3 million.

• Confirm your asset valuations are current and properly documented.

• Ensure your SMSF annual return and audit are lodged on time.

• Be alert to scams – never share personal details without verifying the source.

How Andromedae can help

Keeping up with annual SMSF changes doesn’t have to be overwhelming. At Andromedae, we handle the compliance, returns and audits for you – all for a fixed fee – while helping you understand what’s relevant to your fund.

If you’d like clear guidance on the 2025–26 SMSF updates and how they apply to you, get in touch with us today.

Disclaimer: Andromedae and its staff do not provide financial advice on whether an SMSF is right for you. We also do not provide advice on what investments your SMSF should undertake. Our role is to manage the administration and compliance of your SMSF. Please seek advice from your own financial professionals to determine what is best for your personal circumstances. All content in this blog is provided as general information only.