In this special episode of the SMSF Adviser Show, hosts Keith Ford and Aaron Dunn are joined by Liam Shorte, managing director of SONAS Wealth, and Phil Broderick, principal at Sladen Legal, at the SMSF Technical Strategy Day in Sydney.

Shorte joins the show to discuss the evolving world of contribution and why it's important to understand the contribution rules and caps to ensure planning decisions remain sound regardless of the final policy settings.

Listen as Broderick unpacks a range of estate planning issues he covered in his session at the strategy day, including how some recent case law should impact the way SMSF professionals consider death benefit nominations.

After nearly two decades, the SMSF lending market has matured into a stable and well-regulated segment – yet complexity and misconceptions persist. Bluestone Home Loans head of specialised distribution, Richard Chesworth, joins host Keith Ford to break down the nuances of limited recourse borrowing arrangements (LRBAs).

From redrawing for property repairs to understanding offset structures and pre-2018 grandfathering rules, Chesworth highlights that success in SMSF lending depends as much on precision and teamwork as it does on opportunity. Listen as they discuss:

• How advisers can work through the complexity that still exists in SMSF borrowing.
• What technical traps remain and how redraws, offsets, and refinancing can trigger compliance risks.
• The importance of collaborating closely with lenders and prioritising expertise and structure over rate alone.

The announcement this week from the government outlining the changes to the $3 million super tax was met with relief, but there are still many unknowns. On this episode of The SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn unpack the changes from the initial proposal to the current version released this week.

The discussion emphasises that while the major concerns of taxing unrealised gains and lack of indexation have been addressed, many technical details still need to be clarified through the legislative process and further consultation.

Listen as they discuss:

• Taxable earnings: Originally, the tax applied to all earnings, whether realised or not. The revised measure will only tax realised gains.
• Indexation: The $3 million threshold will be indexed against the Consumer Price Index (CPI) in $150,000 increments, pegged to transfer balance cap movement. The $10 million threshold will be indexed in $500,000 increments, also aligned with CPI.
• Tax rates: For balances above $3 million, an additional 15 per cent tax applies to earnings. For balances above $10 million, an additional 10 per cent tax applies to earnings.
• Start date: The effective start date has been moved to 1 July 2026, with the first assessments issued in the 2027–2028 financial year.
• Liability: The tax liability remains with the individual, who can pay it directly or seek a release from their super fund. The ATO will calculate the tax.
• Consultation: There is optimism for constructive consultation on the implementation details, particularly regarding how realised earnings will be calculated for APRA funds and SMSFs, and the treatment of CGT discounts and pre-2026 asset gains.

Updated legislative and regulatory instruments were added to the ever-expanding cache in the SMSF sector last month. In this episode of the SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn unpack what it all means with Bryce Figot, special legal counsel for DBA Lawyers.

Figot delves into the changes made in LCR 2021/2 and TR 2010/1, focusing on non-arm's length income provisions and contributions and specifically how they may affect professionals working in the sector.

Listen as they discuss:

• The new "safe harbour" example (7A) in LCR 2021/2.

• Paragraph 51, outlining discounted prices for SMSF services.

• Contribution updates in TR 2010/1 that clarify how acquiring an asset for below-market value is not a contribution if it's a purchase under a sale contract.

• The importance of proper documentation and arm's length valuations that are crucial for mixed part-purchase and part-contribution scenarios.

• The disproportionate outcomes that still exist where small non-arm's length capital gains can taint entire net capital gains or distributions from unit trusts.

The SMSF sector is in a holding pattern as key regulatory and legislative changes remain unresolved. In this episode of the SMSF Adviser podcast, hosts Aaron Dunn and Keith Ford discuss some of the key changes that are still to be clarified, such as the Div 296 tax and the much-anticipated NALI/E amendments.

The podcast touches on recent updates from the ATO, specifically regarding Law Companion Ruling (LCR) 2021/2 relating to super contributions and the recently released annual Class Benchmark report.

Listen as they discuss:

• Revelations that more SMSFs will be impacted by the proposed Div 296 than originally estimated.
• The changing face of the SMSF sector demographics.
• The ongoing advice gap in the SMSF sector.
• Implications of commuting market-linked pensions.

Market valuations have emerged as a crucial area in the SMSF sector, particularly in light of regulatory changes and heightened ATO scrutiny. The looming spectre of Division 296 further complicates the landscape, particularly regarding the methodology used for valuations.

In this episode of the SMSF Adviser Podcast, host Aaron Dunn, chief executive of Smarter SMSF, is joined by industry stalwart Shelley Banton, head of technical for ASF Audits, to delve into the changing expectations for valuations and meeting the challenging compliance requirements.

Listen as they discuss:

• The complexity of market valuations, especially for assets that lack readily available market data.
• Concerns around private credit.
• Practical solutions that may support auditors.
• The shift in expectations for the auditing profession.

The updated rules on when a pension commences and ceases have created confusion in the SMSF sector. On this week's episode of the SMSF Adviser podcast, hosts Aaron Dunn and Keith Ford delve into the intricacies of TR2013/5 with Tim Miller, head of education and technical for Smarter SMSF.

Miller explains how the revised ruling, which was updated in June 2024, primarily reflects changes from the super reforms introduced on 1 July 2017. He provides a fresh perspective on what needs to happen when a super income stream fails to meet the pension standards for a financial year, particularly with minimum pension requirements.

Listen as they discuss:

• How the consequences of failing to meet pension standards have become more stringent.
• The trust law aspect of pensions.
• The importance of understanding the minimum pension obligation and the consequences of failing to meet it.
• The retrospective application of these rules.
• The complexities surrounding TRIS.
• The time frame for losing ECPI beyond the traditional 12 months.

Australia is currently grappling with a complex web of regulatory reforms, which has left many advisers in a state of limbo. In this episode of the SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn discuss the pressing issue of financial advice reform.

One of the most troubling issues is in the advice sector, and after nearly three years since the Quality of Advice Review (QAR) report was delivered, the sector is still waiting for significant progress.

• Listen as Keith and Aaron discuss:
• The fragmented nature of the regulatory framework.
• The challenges in the requirement for an account number on fee consent forms.
• The government's focus on super, particularly in the retirement phase.
• Technical aspects of SMSF management, including deferred tax accounting.
• Recent actions by ASIC against SMSF auditors.

In the latest episode of the SMSF Adviser Show, hosts Keith Ford and Aaron Dunn break down some of the alternative methods to remove concessions for large super balances without resorting to taxing unrealised gains, with a range of options being delivered in recent weeks.

The IFPA put forward compulsory cashing, while Geoff Wilson and Wilson Asset Management offered up a progressive super surcharge model, with both looking to meet the government's stated aim for Division 296 in a manner that leaves unrealised gains untouched.

Listen as they discuss:

• What is missing when the government talks about liquidity and diversity requirements for super funds that hold farmland.
• The spike in SMSF-related complaints to AFCA, largely on the back of major financial failures like United Global Capital.
• When Division 296 is likely to land back in parliament.

The increase of the transfer balance cap from $1.9 million to $2 million is not as simple to understand as it seems. In this SMSF Adviser podcast, hosts Keith Ford and Aaron Dunn discuss the implications of the TBC rise implemented at the start of the new financial year with industry stalwart David Busoli.

While this shift appears straightforward, it brings complexities, particularly for existing pensioners, due to the intricacies of proportional indexation. Busoli explains how proportional indexation is a critical concept in understanding how the TBC affects individuals and how, for people just starting their pension phase, the indexation process presents several challenges.

Listen as they discuss:

• The necessity for accurate data to ensure proper management of transfer balance accounts.
• Broader implications of the TBC changes, including the impact on non-concessional contributions.
• The ongoing challenges within the SMSF sector, particularly in managing the intricacies of the transfer balance cap and ensuring accurate reporting.
• Division 7A and its implications for limited recourse borrowing arrangements within SMSFs.