With the Government expected to shortly release its package of reforms following recent industry consultation, the SMSF Association is urging the Government to focus on practical, evidence-based policy that strengthens consumer outcomes while preserving confidence, choice and flexibility.
Speaking in his keynote address at the SMSF Association’s 2026 Technical Summit in Sydney today, CEO Peter Burgess said the Association’s policy approach is guided by a simple principle: regulatory intervention should be evidenced-based, proportionate and directed at the behaviours that cause consumer harm, while preserving confidence in the SMSF sector.
“To this point, we support a ban on high-risk lead generation activities that are likely to cause consumer detriment.
“This approach is preferable to a blanket ban on all lead generations activities with multiple exemptions, which may create uncertainty and risk inadvertently prohibiting genuine referrals and other legitimate activities, such as education or compliance support.
“High pressure sales tactics and property spruiking were behind the recent Government decision to ban LRBAs being used to acquire residential property.
“We have always maintained the focus of Government intention should be on addressing this behaviour rather than making changes to the rules which unnecessarily reduce choice and flexibility.”
In the same vein, Mr Burgess pointed to recent reports suggesting an increase in small balance rollovers to SMSFs and resulting calls for a minimum SMSF balance requirement to address what has been depicted as risky or poor decision making.
“It is important consumers with low superannuation balances have appropriate safeguards built into the system. However, it is equally important to consider the broader landscape when determining what safeguards are appropriate.”
Mr Burgess cited industry data that shows in most cases (circ 80%) low-balance rollovers (less than $100,000) are made to SMSFs with balances of $200,000 or more (the median fund balance being over $450,000).
“This is indicative of consolidation behaviour by financially mature investors managing and refining an established retirement strategy – it is not an indicator, as portrayed by some, of risky and poor decision making.
“While we support measures which protect consumers against clear cases of inappropriate advice fees being charged for a small balance rollover, it is important any legislative or regulatory response appropriately considers the wider circumstances which may legitimately impact on the advice fee being charged.”
“As noted earlier, many small balance rollovers are part of a broader retirement planning strategy and when viewed in isolation they often do not tell the full story.”
Mr Burgess said it is worth noting standard 7 of the Financial Planners and Advisers Code of Ethics states that any fees and charges that the client must pay, and any benefits that are received, in connection with acting for the client are fair and reasonable and represent value for money for the client.
“Again, the real issues here are poor-quality advice, conflicted remuneration and high-pressure sales practices.
“Evidenced-based policy means targeting the source of consumer harm, not introducing broad measures that reduce choice, flexibility and confidence for Australians managing their retirement savings.” Mr Burgess concluded.