The complex rules around small business capital gains tax concessions can eliminate tax on a business sale and unlock significant contributions to super when used correctly, said Jemma Sanderson, Head of SMSF and Succession for Cooper Partners.

At the ASF Audits Technical Seminar, Sanderson said many clients have built a business from scratch and have planned to eventually use the proceeds of its sale to fund their retirement.

“They may well not have actually been adding to super or making contributions over time, so it’s really important that we’re looking at that [CGT concessions] from that perspective,” Sanderson said.

When considering using small business CGT concessions she said it is important to understand fully what they actually comprise.

“Firstly, when talking about these tax concessions when a business has been sold, look at how much tax there is to pay, and if the client is eligible for these concessions. There is also the element of perhaps paying no tax at all on the sale of a small business and this is where it is worth its weight in gold, but it is really complex,” she said.

“It’s an area of immense complexity to get it right. The most golden of the gold is the 15-year exemption. So effectively, from that perspective, if you satisfy the requirements, you can completely disregard a capital gain if you’re eligible under the 15-year exemption. That can also apply if the business sold is a pre-CGT asset.”

The next thing to think about in regard to small business CGT concessions, she said, is the 50 per cent active asset reduction.

“Right now we can get a 50 per cent general discount, and a 50 per cent active asset discount. So ultimately, the capital gain you can discount twice, so you’re only looking at a 25 per cent of the gain that you might actually be paying some tax on,” she said.

“That is where, again, these concessions are fantastic. You’ve got the replacement asset provisions that are in there, too. What happens with that is a lot of people might defer the capital gain actually popping up in their tax return on the basis that over a two-year period they may well acquire a replacement asset, or another business asset.

“Then you’ve got your retirement exemption which is a contribution to make to super, where that is the amount that is disregarded. Unfortunately, some of these particular provisions have not been indexed over time.”

Sanderson said the retirement exemption has been $500,000 for more than 25 years and the maximum net asset value test of $6 million hasn’t been indexed since 2007.

“These sorts of things are not keeping in line with the wealth of people growing and how these businesses are valued. But unfortunately, that’s the way the cookie crumbles,” she said.

“At the moment, you’ve got your 50 per cent discount, and obviously with the CGT changes from 1 July 2027, you’re going to have that indexation consideration as part of all of this, but again there are really strict conditions.”

Sanderson continued that many people believe if they have held the asset for 15 years they are eligible for these concessions, but it is not that simple.

“The first thing to do is make sure you either satisfy the maximum net asset value test, or you’ve got the $2 million small business rollover, and that’s an aggregated rollover,” she said.

“Some of the great things about these tests is there are certain assets that are exempt from the maximum net asset value, including superannuation and the main residence, and assets that are for personal use and enjoyment only. So, the holiday house that never ever gets rented is exempt from this particular test.

“However, if that is exempt, any debt attached to that is also not included from that perspective either. So super is excluded, the primary residence is excluded, and any personal use assets are excluded.

“However, what might be brought back into the net is any assets of affiliates, so it’s important to consider who is an affiliate from that perspective. Then you’ve got the under $2 million aggregated turnover test. You can’t just engineer that in the year of the actual sale.

“They look at the current year and the previous year as well and connected entities and affiliates are also included. Part of the Budget measures was to change that test and increase it to $10 million, but that is only for the active asset discount. That doesn’t apply if you want to be eligible for the retirement exemption, or for the 15-year exemption, or for the replacement asset rules.”

By: Keeli Cambourne | 25 September 2026 | smsfadviser.com

The post Complex rules of small business CGT concessions can present challenges appeared first on Professional Wealth Services.

Drawdowns from superannuation are projected to increase to almost six per cent of gross domestic product (GDP) by 2065–66, according to the latest Intergeneration Report released on Monday.

The report states that drawing down accumulated superannuation will become an increasingly significant part of retirement income for many retirees and is estimated to increase from 2.5 per cent of GDP in 2025–26 to 5.8 per cent of GDP in 2065–66.

The proportion of people with accounts in the retirement phase, from which they are drawing a superannuation pension, will increase 13.9 percentage points (from 11.6 per cent in 2025–26 to 25.5 per cent in 2065–66).

By comparison, the proportion of the population over 65 will increase by only seven percentage points (from 17.8 per cent to 24.8 per cent).

“The purpose of the superannuation system is to ensure a dignified retirement. A continued policy focus that encourages accumulated superannuation savings to be drawn on effectively during retirement will help to fulfill the goal of supplementing the Age Pension as a source of retirement income and drive higher living standards in retirement,” the report stated.

“The superannuation system will support a higher standard of living in retirement and reduce reliance on the Age Pension. Growing balances will result in superannuation becoming the primary source of retirement income for many retirees.”

The report also noted that many recent retirees retain substantial superannuation balances at the end of their lives for multiple reasons, including complexities of navigating the superannuation system, the fear of exhausting savings and the “nest egg” framing of superannuation.

The median superannuation balance for people aged 65 and over in the year before death in 2022–23 was $76,000, with around a quarter of balances exceeding $250,000.

“The Government is progressing reforms to support retirees make better use of their superannuation savings and strengthen the role of superannuation as a source of retirement income as the system matures,” it said.

“Over time, this is expected to improve living standards in retirement. By encouraging retirees to draw on their superannuation savings in retirement, the reforms help ensure that the benefits earned during working lives, and the tax concessions that support them, flow to the targeted generation.”

The IGR also revealed that balances at retirement will continue increasing as the system matures. Between 2014 and 2024, the median superannuation balance for individuals aged 65–69 rose 77 per cent, from $115,000 to $204,000 in nominal terms. By the end of the medium term, this is projected to approach $450,000.

This reflects returns on superannuation balances and a growing number of individuals who can retire having benefited from compulsory superannuation over a significant portion of their working lives.

Furthermore, superannuation tax concessions as a proportion of GDP are projected to increase from around 1.7 per cent in 2025–26 to 2.7 per cent in 2065–66, driven by earnings tax concessions. The value of revenue forgone from superannuation tax concessions is projected to overtake expenditure on the Age Pension in the late 2030s.

As superannuation assets are assumed to grow faster than GDP growth, earnings concessions are projected to increase as a share of GDP in the long term, rising from around 0.9 per cent of GDP in 2025–26 to 1.7 per cent of GDP in 2065–66. In comparison, contributions concessions (such as employer contributions and voluntary pre-tax contributions) represent a more stable share of GDP. They are driven by the same factors that drive Australia’s GDP, wage growth and the size of the workforce.

Financial advice will become more critical, complex

David Lane, Head of Wealth Advisory at Focus Partners Australia said the IGR highlights a future where Australians are living longer, retirement is lasting longer, and financial decisions are becoming increasingly complex.

“With life expectancy projected to reach 89.5 years for women and 86.1 years for men by 2065–66, and the number of Australians aged 85 and over expected to triple, the importance of proactive financial planning has never been greater,” Lane said.

“Qualified financial advisers play a critical role in helping Australians navigate this complexity through integrated advice covering superannuation, investments, tax, retirement income, risk management, estate planning and succession strategies. As longevity increases, the value of holistic financial advice becomes more important than ever.”

Lane said the report also highlights the growing divide between the wealth and opportunities of our older and younger generations.

“Due in part to the strength of superannuation, and the growth in wealth, the report predicts that the proportion of older Australians receiving an Age Pension or income support payment will fall from 66 per cent currently to 52 per cent by 2066. This will lead to a projected decline in Government spending on the Age and Service Pensions from 2.3 per cent of GDP to 1.8 per cent of GDP by 2066,” he said.

“Wealth accumulation is shaped by factors such as home ownership, investment strategies, and superannuation contributions. However, younger generations face new challenges, including slower wealth growth and barriers to entering the property market. As a result, tailored financial advice is essential to help individuals make informed decisions, optimise their savings, and build a secure financial foundation. Many families have become more active in planning for wealth transfer during life, rather than leaving large estates, and this trend is likely to continue to be more prominent.”

Blake Briggs, CEO of the Financial Services Council, said the report contains the good news that Australians are living longer and this underlines the importance of a retirement system that works to provide Australians with an adequate and dignified retirement.

“The other piece of good news is that Australia’s superannuation system will deliver for Australians in terms of higher balances in retirement and a lower call on Commonwealth aged pension spending as a percentage of GDP.”

“However, the report acknowledges that a key driver of intergenerational inequity currently is the fact that young Australians are shut out of the housing market. The report shows home ownership among households aged 25-29 has fallen 17 per cent over the past four decades, with around 250,000 fewer young households owning a home than if 1981 ownership rates had been maintained.”

He added the IGR also makes clear that Australia faces significant long term economic challenges, including slower economic and population growth, an ageing population and continued weak productivity growth which will make it harder to sustain rising living standards and meet the growing fiscal costs of an ageing population.

“Governments will need to tackle the housing and economic challenges through reforms that support investment, productivity, and economic growth. This is key to maintaining public confidence, including preventing superannuation being identified as the solution to Australia’s economic challenges,” he said.

“It is important to recognise, however, that the report demonstrates that Australia’s superannuation system is playing its important role by supporting higher retirement incomes and reducing pressure on future generations.”

By: Keeli Cambourne | 23 September 2026 | smsfadviser.com

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Retirees are being hit harder by rising prices than the general population, with the costs that dominate their budgets rising quicker than inflation, according to the updated Association of Super Funds Australia Retirement Standard.

While the CPI rose 3.8 per cent in the 12 months to June 2026, the items that make up a large share of retirees’ spending rose much faster.

These included electricity up 22.4 per cent, maintenance and repair of vehicles up 6.5 per cent, medical and hospital services up 5.0 per cent and insurance up 4.9 per cent.

The one significant relief was petrol and diesel, which fell 7.3 per cent over the year on lower global oil prices and the temporary fuel excise cut.

Mary Delahunty, ASFA CEO, said retirees are among the groups hit hardest by the cost-of-living crisis because their budgets are weighted towards the things going up in price the most.

The Age Pension is adjusted twice a year in line with what pensioners actually spend, so someone living on the pension alone is broadly protected from price rises. Retirees living a comfortable lifestyle, however, are not. They spend on things the pension does not cover, like private health cover, a car and holidays, and those prices have been rising faster than the Age Pension.

The result is that the gap between the Age Pension and a comfortable retirement is getting bigger every year, and retirees’ super has to work harder to fill the gap.

“Super is the buffer between a life in which the bare essentials are covered by the Age Pension, and feeling comfortable and financially secure in retirement,” Delahunty said.

According to ASFA, a comfortable retirement for a couple who own their own home now costs $1,513 a week, or $78,998 a year. For a single homeowner, it costs $1,076 a week, or $56,166 a year.

The maximum Age Pension is currently $905 a week for a couple and $600 for a single, which will rise slightly on 20 September. The full Age Pension covers around 60 per cent of a comfortable retirement for a couple and around 56 per cent for a single.

The three levels differ little on essentials like food and utilities. The difference is in the discretionary spending that makes life comfortable.

For homeowners aged 65 to 84, the comfortable retirement budget rose 0.5 per cent for couples and 0.4 per cent for singles in the June quarter. The modest budget rose 0.4 per cent for couples and 0.3 per cent for singles, to $52,690 and $36,548 a year respectively.

For retirees aged 85 and over, the comfortable budget is now $74,484 a year for a couple and $53,964 for a single. For retirees who rent privately, the modest budget is now $69,376 a year for a couple and $51,418 for a single.

By: Keeli Cambourne | 18 September 2026 | smsfadviser.com

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Retirement confidence isn’t just about your nest egg, it’s about your plan

Do you know how much interest you pay on your mortgage?

Chances are you do. Like many homeowners, you may follow the Reserve Bank's monthly interest rate decision closely. You know what your repayments are, how much rates have risen over recent years and what that means for your household budget.

Now consider another question.

Do you know the fees you pay on your superannuation account?

For many Australians, superannuation is their second largest asset after the family home. Yet Vanguard's latest retirement research found that one in two of us would not feel confident explaining the fees charged on their super account.1 At the same time, almost two-thirds could not correctly identify the age at which you can access super.2

The contrast is revealing.

The issue isn't that Australians don't care about retirement. It's that retirement often remains a future problem until suddenly it becomes a present one.

Why confidence isn’t just about money

When Australians think about retirement, the conversation usually starts with money.

How much super do I need? Will I be able to retire comfortably? Am I on track?

They're important questions. Yet one of the clearest findings from our research is that retirement confidence isn't just about how much you've saved. It's also about whether you've started planning for the future you want

Australians with a retirement plan are significantly more likely to feel confident about retirement than those without one. Nearly half of working-age Australians, however, have no retirement plan at all.3

Too many Australians see retirement as a distant milestone rather than a life stage worth planning for today. As a result, retirement preparation is often delayed until people feel they have enough time, enough money or enough knowledge to tackle it properly. For many, that moment never quite arrives.

The research also suggests many Australians are navigating retirement largely on their own. Around one in three rely primarily on their own research when making retirement plans, while partners, family and friends are consulted more often than financial advisers.4 This highlights how important it is that Australians have access to clear, practical information that helps them make informed decisions about their future.

A different retirement awaits younger Australians

In today's economic landscape, it's never been more important for young Australians to plan for the future.

While many of today's retirees own their homes outright, our research shows younger Australians increasingly expect to enter retirement with mortgage debt or while renting. Combined with longer life expectancies, rising housing costs may make it more expensive to maintain the retirement lifestyle they hope to enjoy.

Yet planning for retirement doesn't need to start with spreadsheets or complex calculations. It can begin with a much simpler question: what kind of life do you want to live?

Our research found Australians overwhelmingly view retirement as an opportunity to maintain their independence, enjoy good health, spend time with family and friends, and pursue leisure activities. In fact, these lifestyle aspirations consistently rank alongside financial security as key ingredients of a successful retirement.

So, where do you want to live? Will you continue working? What role will travel, health and family play in your future?

These are lifestyle questions before they're financial ones. Yet they often provide the starting point for a meaningful retirement plan. Once people have a clearer picture of the retirement they want, they are better positioned to make the financial decisions that support those goals.

Make a start this September

Retirement planning is not a single decision made at the end of a career. It is a series of decisions made over many years, often starting with one small step.

This month, Vanguard is encouraging Australians to take small, practical steps towards their financial future through the Super September challenge.

Getting started can be as simple as checking your super account, understanding the fees you pay, or having a conversation with your partner about your future. Small actions can build understanding, confidence and ultimately help Australians feel better prepared for retirement.

Footnotes:

1. How Australia Retires 2026, 14

2. How Australia Retires 2026, 12

3. How Australia Retires 2026, 22

4. How Australia Retires 2026, 24

By: Renae Smith | 16 September 2026 | vanguard.com.au

The post The retirement gap we don’t talk about appeared first on Professional Wealth Services.

Retirement starts long before your last day at work

There are certain moments in life that reshape not just your finances, but the way you live.

Starting a family, moving overseas for a job, changing careers – retirement belongs in that same category in terms of its significance.

Traditionally, retirement has been viewed as a single milestone celebrated on the day you stop working. But in reality, it's one of the longest and most significant chapters of your life – one that's being reshaped by longer life spans, evolving retirement rules and rising living costs.

With Australians now living longer than ever, retirement can span decades, bringing new priorities, changing spending habits and different financial decisions along the way.1

That means retirement isn't simply something to prepare for. It's something you'll need to navigate through.

Know what you're aiming for

Before thinking about how you'll fund retirement, however, it's worth asking a simpler question: What kind of retirement do you actually want?

The Association of Superannuation Funds of Australia (ASFA) Retirement Standard provides a useful benchmark by estimating the annual income needed to support different retirement lifestyles

There's no right or wrong answer. Some Australians dream of travelling the world, while others are happiest spending more time with family, pursuing hobbies or enjoying a slower pace of life closer to home.

The important thing is having a destination in mind. After all, it's difficult to know whether you're saving enough – or investing appropriately – if you don't know what you're trying to fund.

With that in mind, here are the three broad phases of retirement and the financial considerations that tend to become most important in each.

Phase 1: Building your retirement runway

The five to ten years before retirement are a critical time for financial planning.

This is when many of the biggest financial decisions get made – when to retire, what sort of lifestyle you want, whether you're saving enough and how to make the most of your remaining working years.

Having a clear retirement plan can make a meaningful difference. Vanguard's How Australia Retires 2026 report has shown Australians who understand the steps they need to take for retirement are significantly more confident about funding their desired lifestyle and more optimistic about their future than those without a plan.

It's also the time to take stock of your financial position.

While seven-figure super balances often grab headlines, they're far from the norm. Australians aged 60 to 64 have a median super balance of around $236,126 for men and $174,655 for women.2

With many Australians approaching retirement with relatively modest super balances, making the most of available opportunities to contribute to super and strengthen retirement savings can be particularly valuable.

Here are several key questions to ask in the decade leading up to retirement:

• How much do I currently have in super and other investments, and will it support the lifestyle I want in retirement?
• Are there any big-ticket experiences I want to budget for, such as a luxury cruise, overseas travel or helping my children financially?
• Will I be in a position to pay off my mortgage before retirement?
• Do I want to stop working completely, or gradually transition through part-time or consulting work?
• Would downsizing or relocating improve my retirement lifestyle or financial position?

Phase 2: Putting your nest egg to work

Once retirement begins, your financial mindset will likely shift.

Instead of building wealth, the priority becomes generating an income that can support your lifestyle while ensuring your savings last for what could be another 20 or 30 years.

For many people, this can be an uncomfortable transition. After spending decades trying to grow your retirement savings, you're now relying on them to fund your lifestyle

Retirees also need to consider sequencing risk – the impact a market downturn can have if it occurs early in retirement while you're simultaneously drawing an income from your portfolio.

As a result, some retirees choose to maintain exposure to growth assets alongside defensive investments and cash, depending on their circumstances, objectives and tolerance for risk.

While liquidity can help fund day-to-day spending and reduce the need to sell investments during volatile markets, growth remains important because inflation continues long after your working life ends.

Your retirement income may also come from multiple sources including investments held outside super and, depending on your circumstances, the Age Pension.

Here are several key questions to consider as you approach and enter retirement:

• Where will my retirement income come from – super, investments, rental income, the Age Pension or a combination of these?
• Is my investment portfolio still appropriate now that my focus has shifted from building wealth to drawing an income?
• Can my income keep pace with inflation?
• Do I have enough cash or liquidity to cover unexpected expenses or periods of market volatility?
• Am I reviewing my spending regularly to ensure my savings remain sustainable over the long term?

Phase 3: Planning your legacy

As retirement progresses, financial planning often becomes about much more than investment returns.

Many retirees begin thinking more carefully about how they'll be cared for if their health changes, whether their current home still suits their needs and how they want their assets distributed to loved ones.

While these conversations aren't always easy, planning ahead can provide greater flexibility, reduce stress for your family and ensure your wishes are understood well before important decisions need to be made.

At some stage during retirement, these are some of the conversations worth having:

• Is my will up to date, and have I reviewed my beneficiary nominations?
• Have I considered how I would fund aged care or additional healthcare needs if they arise?
• Does my current home still suit my needs, or would another living arrangement be more appropriate?
• Have I appointed the right people to make financial or medical decisions if I'm unable to do so?
• Does my estate plan reflect the legacy I want to leave for my family and loved ones?

Strategies to consider

Your retirement plan doesn't need to be perfect. The important thing is to start early, review it regularly and adapt it as your circumstances change.

Here are some practical strategies to consider. As always, it's important to consider whether any strategy is appropriate for your personal circumstances and seek professional advice if needed.

• Start small. Retirement planning doesn't have to happen all at once. Start by discussing a few key questions with your partner or a financial adviser, such as when you'd like to retire and how much super you may need.
• Review your super regularly. Make a habit of logging into your super account and checking your balance, investment options, fund performance and insurance cover.
• Make the most of super contributions. If you're still working, additional concessional (before-tax) contributions could help grow your retirement savings.
• Understand carry-forward contribution caps. If your total super balance is below $500,000 and you meet the eligibility requirements, you may be able to use unused concessional contribution caps from the previous five financial years.
• Learn about downsizer contributions. If you're 55 or over and meet the eligibility requirements, selling your home may allow you to contribute up to $300,000 each (or $600,000 per couple) into super.

Make a start this September

This month, Vanguard is encouraging Australians to take small, practical steps towards their financial future through the Super September challenge.

Whether it's logging into your super account, learning something new about retirement or beginning to map out a plan, September is a good time to take your first or next step towards a more confident retirement.

1. ASFA Retirement Standard Budgets for various households and living standards for those aged 65-84 (March quarter 2026)

2. Median super balance, by age and sex, 2023–24 financial year – Australian Taxation Office

By: Vanguard | 9 September 2026 | vanguard.com.au

The post The three phases of retirement: Key decisions at every stage appeared first on Professional Wealth Services.

The definition of children as dependants under superannuation law is not straightforward when dealing with blended families.

A leading superannuation lawyer has highlighted the broad range of circumstances covered in regards to the definition of children as dependants when formulating estate planning strategies.

“Children are a fascinating thing [when it comes to death benefits]. So your children are your children, that’s usually quite clear, but children of your spouse are [also] your children,” Cooper Grace Ward partner Scott Hay-Bartlem told attendees at the ASF Audits Technical Summit 2026 held in Adelaide last week.

“Now if you actually start playing out children of spouses, if you’re separated from someone but not divorced, they’re your spouse. If they’ve then got a new partner they are their spouse and so your step-stepchildren can actually be your children,” he explained.

“So it starts spinning out this whole children of spouses’ spouses [scenario and] one of my [recommendations] to people is once you’ve separated from someone divorce them because the spin on effect can be quite frightening,” he said.

Hay-Bartlem pointed out situations involving stepchildren need to be approached carefully due to the changing nature of their status for superannuation law purposes.

To this end he recognised if an individual has a stepchild as the result of a new spousal relationship this association ends upon the death of the biological parent of the child.

Given this treatment he warned the inclusion of stepchildren as dependants for estate planning purposes are very complex and require a high level of attention from practitioners.

For example, he said, the action of a stepfather or mother to include a stepchild as a dependant in their SMSF estate plan will no longer be valid if the biological parent passes away first.

However, he acknowledged recent decisions handed down by the Super Complaints Tribunal and the Australian Financial Complaints Authority has made this situation more intricate because the rulings stipulated stepchildren remain children even after the biological parent has died.

By: Darin Tyson-Chan | 23 September 2026 | smsfadviser.com

The post Children as SMSF dependents very complex appeared first on Professional Wealth Services.

1. Not renewing a domain name you want to keep

This warning is new, but the reason for forgetting to renew a domain name isn’t.

Today, a domain name is one of the most important digital assets a practice has, yet far too many practices still risk what happened in this story.

Domains are generally registered for periods of two to five years. During that time, people move on, email addresses are lost, IT support arrangements change, and contact details become outdated. The result is that domain renewal notices can fail to reach the person responsible for the domain.

If a domain expires and is subsequently deregistered, someone else can potentially take ownership of it.

In this case, a practice failed to renew its domain name on time. In the past, it was often possible to renew a domain after it had expired and everything would be OK. That is the part that has changed.

In this instance, GoDaddy took control of the domain after it mistakenly expired. That should still have been recoverable. But this time, the registrar would not allow the practice to renew the domain unless it paid almost $3,000 to ‘buy’ it back.

BEWARE. We have never seen this before. It appears to create a new potential income stream for domain registrars, so make sure you know where your domain records are held and keep a close eye on them.

2. Images used on a website without copyright authorisation

This has been an issue for the past two decades, but it has raised its ugly head again.

The issue concerns copyright ownership of images used on websites. Twice in the past few months, our clients have been contacted by a new player in this area called COPYTRACK.

On both occasions, COPYTRACK wanted our clients to pay several hundred dollars for alleged copyright infringement. While image copyright is important, in these particular cases, we believe the claims are most likely to be unfounded. Each time, the images in question were covered by our Getty Images subscription, which we maintain for our clients to help protect them from copyright infringement claims.

We know of others who have paid up to $2,500 per image to settle similar infringement claims.

In any case, always make sure your website developers are using images appropriately licensed for your use and that you have evidence of that authorisation. This can help protect you from unnecessary copyright claims.

AcctWeb/PlannerWeb

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The tokenisation with regard to the ownership structure of conventional assets will have a profound impact on SMSF holdings and compliance.

A key industry stakeholder has forecast the impact asset tokenisation will potentially have on the SMSF sector and the challenges a shift to this type of ownership structure will raise.

Tokenisation is the process of creating digital ownership of an existing asset and usually involves breaking it down into a collective of smaller pieces.

“For example, instead of one investor needing to buy a $10 million property, the ownership could potentially be divided into thousands of digital tokens,” SMSF sector veteran Hellen Molloy explained in an online post.

Molloy pointed out the process can apply to any asset, such as property, government bonds, private credit, and shares or managed funds.

To this end, she noted it has the potential to change how assets are bought, sold, owned and administered.

“It could also allow large assets to be broken into smaller pieces, potentially giving investors access to investments that previously required very large amounts of money,” she said.

Given tokenisation will likely have an effect on all asset classes, she predicted it has the potential to impact the SMSF sector in a significant way.

“In the future, an SMSF might have a portfolio containing Australian shares, property, Bitcoin, tokenised bonds, tokenised property and tokenised private investments,” she estimated.

However, she acknowledged this would be accompanied by compliance issues that will need to be resolved.

“Our SMSF system wasn’t originally designed for this and that raises some big practical questions,” she recognised.

“[Questions like] who legally owns the tokenised asset? Who holds it in custody? How does the accountant value it? How does the auditor verify it exists? How does the SMSF administrator record it? How does the trustee prove ownership? What happens when it is sold? How is it taxed? What protections exist for the investor?

“These are the kinds of issues the financial industry needs to solve as tokenisation grows.”

She expected the shift to tokenisation will increase in the immediate future and noted the consequence this will have on the country’s retirement savings framework.

“[It] means Australia’s superannuation and SMSF ecosystem needs to understand how trustees will safely own, hold, value, administer, audit and eventually transact these new forms of assets,” she pointed out.

By: Darin Tyson-Chan | August 26, 2026 | smsfadviser.com

The post Tokenisation to change SMSF landscape appeared first on Professional Wealth Services.

A high number of people plan to use super to extinguish their mortgage as more people expect to retire still holding that debt.

A significant number of Australians below the age of 35 expect to retire with mortgage debt, with many planning to use their superannuation to clear it, new research released by Vanguard has found.

The “2026 How Australia Retires” report released yesterday stated 48 per cent of gen Z Australians and 37 per cent of millennials expected to retire with a mortgage compared to 23 per cent of gen X and 24 per cent of baby boomers.

The figures were drawn from a survey carried out in February of a nationally representative sample of more than 1800 Australians aged over 18 that also found of those carrying a mortgage into retirement, 39 per cent planned on using superannuation to pay off their mortgage in one transaction.

A further 45 per cent would continue to make repayments, 16 per cent would sell their home and use the proceeds to pay out their mortgage debt, while 14 per cent were unsure how they would deal with the issue.

“These findings highlight a clear generational pattern, with younger Australians more likely to expect housing debt in retirement,” the report stated.

“This is consistent with the trend of more Australians carrying housing debt for longer. Australian Bureau of Statistics data shows that between 2000 and 2020, the proportion of Australian households with a mortgage increased from 32 per cent to 37 per cent, while the proportion owning their home outright fell from 39 per cent to 30 per cent.

“The fact that many younger Australians expect housing debt in retirement has important implications for retirement planning.

“It may also influence how superannuation is used, with some Australians likely to draw on their super to repay housing debt, rather than relying on it solely as a source of retirement income.”

Vanguard Asia-Pacific managing director Daniel Shrimski added the benefits of life-time super could be undermined by housing costs.

“Younger Australians may accumulate larger super balances than previous generations, thanks to higher contribution rates and more years in the system, but if a greater share of those savings is needed to pay down housing debt or cover ongoing housing costs, the boost to retirement income may be smaller than many people expect,” Shrimski said.

“It also raises an important question: how will Australians fund the dignified retirement they’ve worked hard for if a significant portion of their super is needed to pay off their home?”

The report also noted younger Australians believe they will need more income in retirement, with those under 45 estimating an annual retirement income of more than $90,000 compared with around $60,000 reported by those aged 65 and over.

By: Jason Spits | August 27, 2026 | smsfadviser.com

The post Super viewed as mortgage solution appeared first on Professional Wealth Services.