The regulatory uncertainty around superannuation, and particularly the impact of Division 296 tax measure on SMSFs, has not impacted their establishment but rather has increased community engagement around retirement income savings, according to two service providers.
Heffron managing director Meg Heffron observed SMSF establishments had maintained a steady growth pattern in recent years spurred on ongoing change and the desire to take control over the long-term future of their superannuation.
“Despite the fact that lots of people talk about legislative change being a far more prevalent concern for people now than it ever has been people are coming to SMSFs anyway, and that’s in an environment where advisers pulled back a few years ago and haven’t come back into the fold,” Heffron said during a panel discussion at Class Ignite 2025 held recently in Sydney.
“While we have a whole bunch of people coming in without advice, the flip side of that is they are coming in despite the lack of advice to do it, and you hope that turns into a huge demand for SMSF advice when these people are ready for it.”
“There is an awful lot of people now triggered by Division 296 talking about giving money to their kids, and there’s a decent cohort saying ‘I’ll give it to my kids, and I’ll make them put it in there sooner and they should have an SMSF for that’,” she noted.
“We’ve all got to have super. People have got more super today than they’ve ever had and sometimes regulatory uncertainty drives SMSFs because you think ‘I don’t want those people out in public fund land controlling my super. If I’ve got to have it, I’ll have it in my control’.”
Fellow panelist NowInfinity general manager Kate Anderson added the increase in SMSF establishments was also taking place at a time of inter-generational wealth transfer which has become marked by greater engagement with the super system.
“For the first time in a long time, since probably the introduction of limited recourse borrowing, we have got more people talking about super for the first time,” Anderson pointed out.
“Over the last 10 years it’s been quiet but for the last couple of months in particular with superannuation getting more media attention around Division 296, it’s been astronomical to see that people are taking a greater interest, not only SMSFs, but also in what is the $3 million cap and whether it will impact them or their kids.
“They are asking what do they need to do, is their super fund the right structure and how am I investing, and it’s been great that we are having those discussions outside the industry as well as inside it.”
