As we move through 2026, the SMSF sector continues to balance opportunity with increasing regulatory focus. Trustees are navigating a broader range of investment options, weighing the benefits of control and flexibility against rising costs, compliance obligations, and the need for strong diversification.
At the same time, upcoming changes like Payday Super are set to reshape how contributions are managed, placing greater emphasis on timely payments and system readiness.
In this edition, we explore key investment strategies, break down the pros and cons of SMSFs, and highlight what you need to know to stay compliant and prepared for the year ahead.
Rick Welsh – Senior Audit Manager #100304283
Belinda D'Aspromonte – Audit Supervisor #100304550
Source: SMSF Adviser – 9 ways you can invest using SMSF
- Full Control – You decide where and how your super is invested, tailoring strategy to your goals.
- Investment Flexibility – Access to direct shares, ETFs, property, term deposits, and more.
- Potential for Better Returns – Well-managed, diversified SMSFs can match or outperform large funds.
- Family Control – Pool super with a partner or family (up to 6 members); useful for estate planning.
- Transparency – See exactly what you own, what fees you pay, and how investments are performing.
- High Costs – Around $4,000/year in fixed costs; inefficient for balances below ~$200k.
- Requires Significant Capital – Generally need $200k–$500k+ to be worthwhile.
- Knowledge & Time Required – You're responsible for investment decisions and compliance.
- Regulatory Responsibility – Trustees must follow strict super laws; penalties apply for breaches.
- Risk of Poor Diversification – Over-investing in one asset (e.g. property) is a common pitfall.
- No Safety Net – No professional fund manager or default diversified portfolio.
From July 2026, Payday Super turns superannuation into a real-time payment alongside wages — rather than something employers deal with quarterly. The ATO has been busting common myths around the change. Here are the key takeaways.
- Plan cash flow changes
- Check payroll system readiness
- Begin transitioning away from SBSCH early
- Super must be received by the fund within 7 business days of payday
- Payments only count when received — not when sent
- Funds must allocate or return contributions within 3 business days
Further reading: ATO busts Payday Super Myths – SMSF Adviser
From my recent observations, the valuation of unlisted investments continues to be a high-risk area in SMSF audits in 2026. This is largely due to increased ATO scrutiny around compliance with Regulation 8.02B, which requires all fund assets to be reported at market value.
To address this, I recommend that trustees provide objective and supportable evidence to substantiate asset valuations — such as independent appraisals or recent arm's-length transaction data. Where an asset is maintained at cost or based on a prior valuation, trustees should also offer current supporting evidence justifying that approach.
Providing appropriate documentation demonstrating that valuations are fair and reasonable up front will help minimise audit issues and facilitate a more efficient and timely audit process.
Belinda D'Aspromonte, Audit Supervisor — belinda@connectsmsfaudit.com.au