.

The 2026 Mercer Shaping Super report also stated that this trend could affect the competitive dynamics between SMSFs (which are ATO-regulated) and APRA-regulated funds.

The report serves as a wake-up call to super funds as they lose retirement accounts to platforms and uncovers that while adviser-focused platforms hold 6 per cent of super accounts, they are winning 42 per cent of all retirement account flows.

Mega funds (funds with assets of more than $100 billion), on the other hand, are attracting just 31 per cent of retirement account flows, despite holding 61 per cent of all super accounts. 

The report warns that the industry is going through a huge transformation and the battle between mega funds and platforms is becoming the nuanced version of the traditional “retail versus industry fund” debates. 

Additionally, the report revealed that Australia’s superannuation assets will reach $15 trillion by 2050, rising to approximately 170 per cent of GDP and consolidation is accelerating, with the number of funds forecast to decline from 75 in 2025 to 30 in 2035.

By 2035, the average fund is expected to quadruple to $161 billion under management, relative to its size today.

The report states that Australia was an early global adopter of Defined Contribution (DC) retirement system benefit desig

ns. DC arrangements now represent 91 per cent of the Australian system, with 66 per cent of total system assets held in APRA-regulated DC arrangements and the remaining 25 per cent in self-managed superannuation funds

By 2050, the report stated it expects defined benefit assets to account for only two per cent of system assets as these plans continue to “run off” with virtually no new entrants.

Long term, the report projected that  APRA-regulated DC funds to account for 85 per cent of assets, driven by the segment’s strong growth, with contributions expected to continue exceeding benefit payments until the late 2040s (for the system as a whole, this point is reached in the mid-to-late-2030s).

It also projected that SMSFs will account for 15 per cent of assets, reflecting increased benefit payment levels from SMSFs and the growth of the platform segment which shares a similar “target market” demographic.

Platform funds are expected to grow, driven by strong adviser-led inflows, from 10 per cent to 14 per cent in 2035, likely becoming the “sector of choice” for individuals who feel inadequately served in retirement by traditional superannuation funds, or prefer the platform structure over an SMSF.

Keeli Cambourne
March 27, 2026
smsfadviser.com

The post Rise in SMSF inflows indicate more people are moving into the sector appeared first on Professional Wealth Services.

.

As widely expected, the Reserve Bank of Australia (RBA) lifted the cash rate by 25 basis points to 4.1% at March’s meeting. This marks the second consecutive rate hike, signalling that the RBA is becoming more concerned about inflation picking up again and is prepared to move policy into more restrictive territory.

The decision reflects renewed inflation pressures, partly driven by higher oil prices linked to ongoing conflict in the Middle East. Rising energy costs are flowing through supply chains and adding to broader price pressures at a time when the Australian economy is still operating close to capacity.

“The RBA appears intent on pushing policy into restrictive territory to curb aggregate demand and re‑anchor inflation expectations.” says Vanguard Senior Economist, Grant Feng

Feng said inflation continues to run well above the RBA’s 2–3 per cent target band, with the Middle East conflict likely to add further upside risk to inflation via higher oil and fuel costs. At the same time, labour market conditions remain tight. Compared with other major economies — many of which now have unemployment rates at or above their estimated neutral levels — Australia stands out as having a particularly tight labour market. This adds to wage and cost pressures and complicates the path back to lower inflation.

“Against this backdrop, today’s rate hike appears warranted. The RBA is deliberately seeking to slow economic growth and, if necessary, allow some softening in labour market conditions in the second half of the year to ensure inflation is brought back within target,” he said.

Feng says we should expect inflation to remain above target in the near term “Given the balance of risks, the RBA is likely to prioritise price stability and maintain a “higher‑for‑longer” stance. Our base case is for one further 25bp rate hike later this year, taking the cash rate to 4.35% by year‑end.” Feng said.

What this means for investors

For investors, the key takeaway is that interest rates are likely to stay higher for longer, as the RBA focuses on bringing inflation back under control. While further rate rises may create short‑term market volatility, they also reinforce the importance of staying focused on long‑term investment goals rather than reacting to short‑term policy moves.

Higher interest rates tend to weigh on interest‑sensitive sectors, such as housing and parts of the equity market, while providing more attractive yields across cash and high‑quality fixed income than investors have seen in many years. For diversified portfolios, this environment can improve income potential and restore the role of bonds as a stabilising force over time.

Importantly, rate hikes are a response to an economy that remains relatively resilient. While growth is expected to slow, the RBA is aiming for moderation rather than a sharp downturn. For long‑term investors, periods of economic change are part of the normal cycle and can offer opportunities to invest at lower prices.

By Vanguard
25/3/26
vanguard.com.au/

The post Interest rates likely to stay higher for longer appeared first on Professional Wealth Services.

.

Auditors Institute ambassador Graeme Colley said the legislation for the new impost that will commence on 1 July was split into two sections based on the $3 million and $10 million thresholds that will apply, as well as the different operation of the tax in its first year and subsequent years.

“You need to talk to your clients about the immediate future. It’s all about the next financial year, the 2026/27 year, as that is what your clients are going to be interested in at the start,” Colley said.

“Once you get to 2027, or a bit later in the 2026/27 year, you are then going to have to get them used to the way in which the legislation works for the next year going forward from 1 July 2027.

“That is something that is going to be a challenge because it’s hard enough for some people to understand how the legislation works. They think they are going to be taxed at 15 per cent on the first $3 million, which is a load of rubbish.”

He said the two stages were further evident in how the Division 296 would be calculated in 2026/27 and then from 2027/28 onwards, and how deceased members would be treated in those periods as well.

“The way in which it works for the 2026/27 year is the closing total superannuation balance (TSB) on 30 June 2027 is used to calculate the proportions of that balance that are over the $3 million and $10 million thresholds [for Division 296 purposes],” he said.

“For the 2027/28 financial year and subsequent years, you are looking at the higher of the opening and closing balances.

“If the member dies during that first year, there is no Division 296 tax payable.

“If a member dies during the 2027/28 and subsequent years, then the TSB on 30 June in the previous financial year is what’s used for calculating the tax.”

He noted in regards to death benefits and Division 296 there was potentially an additional stage if there was a delay in paying those out.

“There is more about the death benefit calculations in the draft regulations at the moment,” he said.

“It’s mainly about the time it takes to pay death benefits out and the way in which the Division 296 tax then gets imposed.

“The way in which the regulations are currently drafted is that it’s not until the time the payments are made that the Division 296 tax gets imposed.

“So you may need to be careful with death benefits that might be delayed because there’s a bit of rock throwing going on [between members].”

March 26, 2026
Jason Spits
smsmagazine.com.au

The post View Division 296 as two-stage event appeared first on Professional Wealth Services.

.

Although recent events can feel unsettling for many reasons, history suggests that such periods don’t typically derail long-term investment outcomes. 

Key points

• Volatility has risen as markets reprice near‑term geopolitical risk, driven largely by higher oil prices and policy concerns.
• History suggests these episodes are typically transitional, with markets recalibrating as uncertainty fades.
• Turbulent markets can test portfolios but also create opportunities for rebalancing and staying aligned with long‑term goals.

What’s driving markets at this time

These geopolitical tensions are influencing markets primarily through energy prices. Concerns about supply disruptions have pushed oil prices higher, which can feed into expectations around inflation and monetary policy and weigh on investor sentiment. 

Importantly, markets appear to be repricing near-term risk rather than signaling a fundamental shift in long-term economic prospects. Markets have responded, but not in a way that suggests fears of a sustained shock to growth. 

Perspective still matters

It’s clear why investors will want to pay attention to these developments: Concerns about escalation and continued spillover are understandable given the region’s place in global oil production and distribution. Although near-term uncertainty is likely to remain high and oil prices may remain volatile, markets tend to recalibrate as scenarios become clearer and extreme outcomes fail to materialize. 

Lessons from history

Periods when stocks and bonds decline together are often associated with inflation concerns, policy uncertainty, or sudden risk repricing. Historically, these environments have tended to be transitional rather than enduring. Markets adapt as inflation pressures ease, policy clarity improves, and uncertainty fades. 

Geopolitical events rarely alter long-term market direction unless they result in: 

• A prolonged disruption to global energy supply. 
• A pronounced tightening in financial conditions. 
• A broad economic downturn. 

Absent these outcomes, markets have typically recovered even when tensions have persisted. While markets don’t like uncertainty, strong reactions to geopolitical events are generally short-lived. In the wake of major geopolitical events going back decades, U.S. stocks have delivered positive average returns 6 and 12 months later.

What this means for investors

• Diversification still matters, even when it’s tested. Although diversification may not eliminate short-term losses, it remains important for long-term resilience. 
• Discipline is essential. Remaining invested through volatile times means not selling when markets have bottomed. 
• Market volatility can create opportunity. This is especially true for investors rebalancing or investing new dollars to better align portfolios with long-term goals. 

The bottom line

Periods when both stocks and bonds are under pressure can be particularly uncomfortable and may feel unique, but they are part of investing. While volatility may persist in the near term, long-term outcomes remain driven by fundamentals such as economic growth, inflation trends, and policy credibility. Investors who stay disciplined, diversified, and focused on their long-term objectives have historically been best positioned to navigate uncertainty and participate in future growth.

By Vanguard
12 March 2026
vanguard.com.au

The post Iran conflict: Keeping perspective on market risk appeared first on Professional Wealth Services.

.

Peter Johnson, director of Advisers’ Digest, said if a member forgets to meet the minimum payment in a “normal” pension, they will pay tax for that year and then recommence it. However, if they forget to meet the minimum payment on a death benefit pension, “you’re gone”.

Johnson gave an example of an SMSF with two members in pension phase. One member passed away, and their pension reverted to the spouse.

“The question is can the pension that reverted to the surviving spouse be put into accumulation at a later stage or must it then be paid out?” he said.

“Let’s have a look at the transfer balance cap rules. Say, we have Peter and Chloe who start a pension today, each with $2 million. They both have reversionary pensions. Peter dies and his pension automatically reverts to Chloe.

“A TBAR should be done straight away to give the date of death and the $2 million is moved over to Chloe. A TBAR has to be done because it’s a reversionary pension and it shouldn’t impact Chloe’s transfer balance cap.”

Assuming Peter died in January 2026, Chloe’s balance is going to go to $4 million on 1 January 2027.

“At that point in time, Chloe will have a transfer balance cap of minus $4 million,  so she’s going to get a notice to commute money back to accumulation of $2 million, but she can’t commute the death benefit pension, because the death benefit must be paid by way of a pension or cash lump sum,” Johnson said.

“You can’t have a death benefit in accumulation, and if you have a death benefit pension, and you forget to pay the minimum, then that’s it. It’s got to come out.”

He said what should happen is that after Peter dies, Chloe has a pension with a balance of $2 million and Peter’s pension is just moved to her so she ends up with $4 million in pension phase.

“There’s going to be a big spot of bother come the first of January. So, you take her personal pension account, the one that’s not Peter’s death benefit, and you commute that back to accumulation,” he said.

“What I always suggest when it is a death benefit pension, is to set it up on monthly payments so they always make the minimum. If they don’t make that minimum payment it might seem like it’s only a small mistake and won’t matter, but that’s not how it works. It’s a massive mistake.

“So force them to do monthly repayments, then if they miss one, you can use the one-twelfth rule and you’ll be OK.”

Keeli Cambourne
March 27, 2026
smsfadviser.com

The post Know the difference between death benefit pension and normal pension or pay the price appeared first on Professional Wealth Services.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

The post Most Valuable Industries in the World 2026 appeared first on Professional Wealth Services.

.

Matthew Burgess, director of View Legal, said the role of trusteeship of any entity is one the courts have regularly highlighted as requiring conduct of the highest standards and the decision in Fitzmaurice and Commissioner of Taxation (Taxation) [2019] AATA 2217 provides a helpful example.

Burgess said the case involved a range of breaches of the legislation, including lending money to a member, breaching the sole purpose test, the early release of benefits where the member did not satisfy the statutory test for financial hardship and the late lodgement and failure to lodge annual returns.

It also involved the failure to make and maintain investments at arm’s length, failing to keep an up-to-date market valuation of the major asset of the fund and finally, record keeping failures.

“The court confirmed that on the facts the trustee did not have a proper understanding of the role of a trustee and the duties owed by a trustee and a director of a trustee company and that there was no suggestion of dishonesty or intention to defraud on the part of the trustee was irrelevant; their incompetence and a lack of acceptance of responsibility was telling,” Burgess said.

“Ultimately, the trustee was held to have an insufficient understanding, insufficient skill and a lack of the required diligence to be a trustee of an SMSF. In disqualifying the trustee the court also confirmed the trustee was not a fit and proper person to be a trustee of an SMSF – itself a further ground supporting the disqualification.”

Burgess continued the court stated that unclear verbal advice from the accountant for the SMSF was not something that was appropriate to rely on, partly because the primary responsibility for compliance lies with the trustee of an SMSF, not the advisers to the fund.

In a similar case, Goulopoulos and Commissioner of Taxation [2022] AATA 2540, the nature, seriousness and number of contraventions were held to be sufficient grounds for disqualification of the trustee.

He said in this case the breaches included a breach of prescribed operating standards (section 34 SIS Act); the failure of the requirement to lodge annual returns (section 35D); a breach of sole purpose test (section 62); lending to members (section 65); contravention for acquisition of certain assets from members (section 66); contravention for borrowing (section 67); a breach of in-house asset rules (section 84); and requirement that investments are on arm’s length basis (section 109).

“The court confirmed that the trustee demonstrated ‘that he preferred to take actions that suited his own convenience and comfort, rather than doing what he understood was right’. Furthermore, while the trustee had expressed some remorse or contrition for what occurred, this appeared to be in relation to the fact of disqualification; as opposed to any acceptance of the wrongfulness of the conduct,” Burgess noted.

“Given that the court concluded that on the balance of probabilities it was likely that the trustee would deviate from the standards required as a responsible officer, disqualification was appropriate (see Stasos v Tax Agents Board (1990) 21 ATR 974).”

He added this was despite the trustee offering to undertake an education course with an eligible provider, provide an enforceable undertaking to stop the behaviour that led to the contraventions and put in place strategies to prevent contraventions occurring again. 

“The court concluded that the suggested strategies were not spelt out in detail, and so far as they were, they did not in fact mitigate the risk of future contraventions,” Burgess said.

Another recent decision in Sherallene Alicer and Joshua Ramos and Commissioner of Taxation (Taxation) [2026] ARTA 34 provides further context in this area.

“The case followed a (claimed) relationship breakdown between the spouses who were the trustees of the SMSF, there were 244 breaches of SIS, leaving the fund with at one point a bank account balance of less than $1,500,” Burgess said.

“In confirming the ATO’s decision to disqualify the couple as trustees, the tribunal noted that this was not a case involving isolated or minor withdrawals where the SMSF remained substantially intact – rather, for a prolonged period of time there were virtually no funds available and the impact on the SMSF was profound and went directly to the seriousness of the contraventions which involved key prohibitions in SIS and ongoing operational matters, and in some instances could see convictions for criminal offences.”

The court also stated that while accepting the spousal relationship breakdown and Covid were distressing and created financial insecurity, these trials did not explain the withdrawals that predated those events – and further, to the extent that loans were advanced to meet the costs of home renovations, reflected discretionary spending which sat uneasily with the preservation objective that underpins the superannuation regime.

“The decision noted that when considering SMSF trustee disqualification situations some, but only limited, weight should be given to assertions of remorse and reform and that difficulties in accessing information from third party administrators, such as for crypto currency investments, do not relieve trustees of their statutory obligations. Instead, reasonable steps must be taken to lodge returns in a timely manner and repeated non-compliance reflects more than mere administrative oversight,” Burgess said.

“Ultimately, the court noted, the superannuation regime is designed to operate notwithstanding pressures such as relationship breakdown and adverse macroeconomic events, and if trustees were permitted to access an SMSF’s assets whenever confronted with financial difficulty, the integrity of the scheme would be undermined.”

Keeli Cambourne 
March 30, 2026
smsfadviser.com

The post SMSF trustees acting badly – further disqualification cases appeared first on Professional Wealth Services.

.

Investors are being urged to resist making impulsive decisions about their shares and other assets as the conflict in the Middle East plays out.

Market fluctuations in the wake of the war in the Middle East are a timely reminder for investors to stay calm when dramatic world events unfold.

Following this latest conflict, media headlines have flagged the likelihood of ongoing global stock market tremors, trade-flow disruptions and surging oil prices. Reserve Bank of Australia governor Michele Bullock has also suggested the war could lead to higher interest rates.

In response, some investors have been snapping up cash, while others have reportedly poured their money into gold-mining companies and oil stocks.

The key message for investors, however, is to play it safe. Middle East unrest clearly adds a new dimension of uncertainty to markets, which could tempt investors to move to cash or other safe-haven assets. And while it is important to be aware of world events, in situations like this it’s critical for investors to focus on their long-term goals.

Investors should continue to follow Vanguard’s Principles for Investing Success, while maintaining perspective and long-term discipline. Those principles recommend:

• Setting your goals – create investment targets that are measurable, attainable and have a long-term focus.
• Staying well balanced – align your strategy to your goals and have a well-diversified portfolio of assets to help reduce risk.
• Minimising your costs – know that while you cannot control what happens in markets, you can check and compare the amount you pay in fees to invest.
• Maintaining your perspective – avoid rushed investment decisions and remain committed to your long-term goals.

Don’t lock in losses

One of the biggest risks when markets are unstable is for investors to sell off stocks or other assets as prices dip or tumble, effectively locking in losses on an asset that may soon rebound.

Time after time, research has underlined the importance of holding tight amid turmoil, rather than making rash decisions in response to geopolitical events. Examining geopolitical events since 1963, demonstrates that while equity markets may react negatively to the initial news, geopolitical selloffs are typically short-lived. Geopolitical events don’t typically cause equity market losses over these periods.

Amid speculation that the Iran conflict could drag on, it makes sense for investors to engage with their financial adviser to consider all the implications – negative and positive – of the war. 

More than likely, however, they will tell you to stick to your long-term financial strategy.

By Vanguard
18 March 2026
vanguard.com.au

The post In turbulent times, stick to your long-term wealth strategy appeared first on Professional Wealth Services.

.

.

.

.

.

.

.

.

.

.

.

.

.

The post Most Reliable Car Brands in 2026 appeared first on Professional Wealth Services.

.

Katie Timms, partner with RSM, said the choice to use either a trust or an SMSF now is highly strategic and depends on wealth level, beneficiaries, and estate planning, and both have advantages and disadvantages.

Timms said the proposed Div 296 tax is adding complexity to the estate planning process, creating another layer in strategic calculations around whether to retain wealth inside super or hold it in alternative structures like trusts or companies.

She said for individuals running large pension balances or sophisticated super strategies, the actual impact may not always be as severe as initially feared, but it still requires careful modelling and ongoing monitoring. It also reduces the certainty that super was once known for in long-term tax planning.

She continued that overall, Div 296 narrows the gap between superannuation and other wealth structures and while super can still be highly tax-effective, particularly below the $3 million and $10 million threshold, high-balance individuals now need to weigh the additional tax against other considerations such as estate planning, access to capital, and flexibility.

“Traditionally speaking, for high-net-wealth individuals, these are people who are going to be impacted by Div 296,” she said.

She said those clients now need to weigh up the tax advantages of a trust versus holding wealth within the super environment in an SMSF.

The advantages of an SMSF in regard to tax include the fact that it is generally taxed at 15 per cent or zero in pension phase, they are often simpler, the member/director has some control over decisions and are traditionally attractive for high-net-worth individuals.

However, Timms said, the SMSF structure does also come with challenges, particularly now with the introduction of the Div 296 tax including the risk of death benefits tax when super is paid to certain beneficiaries, and compliance risks such as non-arm’s length income.

“For clients that are running pensions a lot of the time, their tax is nowhere near as bad as what we think it is going to be. But for a trust, what’s the big win? No death benefits tax,” Timms said.

“We don’t have a looming tax that is sitting there waiting if we’ve left assets too long. Unfortunately, I do think I’m getting further away from being able to say super is the best because of all these complications with Div 296 tax for high balances.”

Timms said the ability to just use children as tax beneficiaries via a trust has been diminished, especially with Division 7A tax, and clients now have to “juggle” making distributions via a trust structure.

“What happens if we’ve got loans? It adds another layer of complexity to having these sorts of structures if we’re trying to get money out,” she said.

“At the end of the day with an SMSF, if you’re the member, you are the director, you have some say in what is going on. You can’t ultimately control and rule as to what that person does with that money once it’s been gifted and with your trust, it’s absolutely vital to really manage your estate plan well, because if you’ve got things like unpaid present entitlements, or you’ve gifted money to the next generation, it’s gone into the trust as a gift and you’ve got to make sure that’s really protected from your estate planning.”

However, she said there are upcoming challenges.

“At the end of the day, your assets inside of super unless you’re doing something really wrong, 15 per cent or zero. On your trust side of things, you’ve got the flexibility to manage that if you’ve got the ability to distribute down to children, to non-working parents, or at the end of the day, a corporate beneficiary, you can make that decision as for the best tax outcome,” Timms said.

Keeli Cambourne
February 24, 2026
smsfadviser.com

The post Super versus trusts: What is the best option with Div 296? appeared first on Professional Wealth Services.