On one of the last working days of the year, the revised Division 296 draft legislation was finally released and the government has given the industry until 16 January to reply – while many will be on annual leave.
And with a proposed start date on 1 July 2026 for this newly minted draft, the pressure is on to get it passed into legislation as soon as possible so advisers and trustees can use the four months from when parliament returns to the end of the financial year to get all their ducks in a row.
However, what this year did showcase was the collective power of the people and the determination to rectify an issue that was being effectively ignored by those who make the big decisions.
The SMSF Association was joined by not just related industry bodies and associations but by the big-end of town in the superannuation sector and the vocal majority succeeded in forcing the government to listen and remove the most egregious elements of the previous draft.
It remains to be seen how the new draft will be received and although many of the worst elements of the former tax have been deleted it seems there may still be some sticking points that could cause contention.
You could be forgiven for thinking that Div 296 was the only issue of interest in 2025, but there were a few others that continued to simmer in the background, and are more than likely to do so for sometime yet.
One of those is NALI and despite getting clarification on a few of the more technical issues, it continues to attract the ire of the sector for its complexity.
Decisions regarding legacy pensions also helped many breathe a little easier, but with that came some anxiety about other aspects of pension income.
Despite the bumps and roundabouts that often define the SMSF sector, one thing was clear from this year – there are more people, and many younger people, choosing to take control of their retirement savings.
The growth in the sector continues and with that comes a fundamental shift in the way in which SMSFs will be managed. As younger trustees and members enter the sector, they bring with them new ideas and innovations and it is now up to the industry to adapt and change to keep pace.
Next year’s SMSF Association conference will be exploring some of these issues and, of course, the implications of the Div 296 revised legislation.
We’d like to thank all our subscribers for their continued support throughout 2025 and look forward to bringing you the news and events in 2026.
