Background/overview
Failing to keep your SMSF deed up to date can lead to the SMSF failing to optimise tax and contribution concessions, unnecessarily restricting investment opportunities, and can result in funds being unable to function appropriately if a member loses capacity or dies.
Deciding when, and with whom, to update the governing rules of an SMSF can be a difficult decision to make.
In this article, we have collated some key changes impacting SMSF deeds over the past 20+ years. As you may be aware, there have been many more changes to those discussed below.
For more information about our governing rules update services, including our Annual Update Service, please visit our website: https://www.dbalawyers.com.au. For a recent article on our latest deed, click here.
| When | What | How |
| 2026 | Amendment to the definition of an SMSF | After 20 September 2026, an approved public trustee or an agent can, subject to the SMSF deed, be appointed as an SMSF trustee/director. Further, that person can now be paid for their services. |
| 2026 | Amendment to SMSF borrowing exemptions | After 10 August 2026, SMSFs can only use a limited recourse borrowing arrangement (LRBA) to acquire real estate that qualifies as business real property. Broadly, this excludes most residential property. |
| 2026 | Division 296 CGT adjustment introduced | A once-off adjustment to the cost base of SMSF assets is available to SMSFs to adjust the cost base of assets to market value as at 30 June 2026. Broadly, this results in disregarding any pre‑1 July 2026 capital gain when calculating the fund’s taxable income for Division 296 purposes. However, this does not apply to the usual CGT calculation. |
| 2025 | Div 296 | After intense public protest, the draft legislation was revised to remove the taxation of unrealised gains. The start date was also deferred to 1 July 2026. |
| 2025 | Family law split rule changes | Property settlement mechanics and Div 7A.2 split documentation rule changes were introduced amending valuation assumptions and terminology for property settlements and separation declaration requirements were removed for high-value funds in relation to superannuation agreements. |
| 2024 | Legacy pension commutation rules change | Specified legacy products were allowed to be commuted during a specified 5-year period so that they could be exited with the resulting capital used to commence another retirement phase interest, left in an accumulation interest account, or withdrawn from superannuation entirely. |
| 2023 | Downsizer contribution age lowers | From 1 January 2023, a younger demographic (persons aged 55 or more, rather than 60 years or more) were able to make a downsizer contribution. |
| 2023 | Div 296 | Consultation and public debate commenced on the proposed changes to the taxation of superannuation for members with account balances above $3million. Original consultations included a formula to calculate member account balances that included unrealised gains. The proposed start date for these changes was 1 July 2025. |
| 2022 | Hill v Zuda Pty Ltd [2022] HCA 21 | High court confirms binding death benefit nominations (BDBNs) can last indefinitely for SMSF members provided they do not rely on reg 6.17A of the Superannuation Industry (Supervision) Regulations 1994 (Cth) (SISR). |
| 2022 | Changes to gainful employment testing and age-based restrictions | The gainful employment test no longer needs to be satisfied from 1 July 2022 for contributions for members between 67 to 75 years. However, a member aged between 67 to 75 must be gainfully employed for a minimum of 40 hours within 30 consecutive days during the financial year to claim a tax deduction for a personal contribution. |
| 2022 | FHSS Scheme expanded | Eligible participants in the First Home Super Saving (FHSS) Scheme can release up to $50,000 in superannuation to assist them to buy their first home. |
| 2022 | Downsizer contribution age lowers | From 1 July 2022, a younger demographic (persons aged 60 or more, rather than 65 years or more) were able to make a downsizer contribution. |
| 2022 | Pension laws and commutation authorities harmonised | New pension laws enable legacy pensioners (with lifetime and market linked pensions) to undertake commutations to resolve the excess transfer balance. |
| 2021 | Changes to the definition of an SMSF | The number of members in an SMSF increased to 6 (prior to 1 July 2021, the maximum was 4). |
| 2021 | Section 110A of the Corporations Act 2001 (Cth) Determination made | Electronic execution of SMSF documents allowed in certain circumstances extended (and then later entrenched). |
| 2020 | Tax treatment of income from super in a testamentary trust | A superannuation death benefit paid to a deceased estate that ends up in a testamentary trust may miss out on favourable tax treatment if it is caught by s 102AG(2AA) of the Income Tax Assessment Act 1936 (Cth) |
| 2020 | Covid-19 responses | During FY2020 and FY2021 some COVID concessions included halving of the pension minimums, some rent and loan relief and limited access to superannuation withdrawals. |
| 2019 | TRIS changes relating death | Clarification given regarding the timing and nature of TRIS and when a TRIS can be made reversionary. |
| 2018 | Downsizer & FHSS contributions | Downsizer contributions and FHSS Scheme contributions introduced. |
| 2017 | Further limitations on contribution caps | Substantial limits on contributions including a $1.6M total superannuation balance cap resulting in higher contributions giving rise to excess contribution issues |
| 2017 | Transfer balance cap introduced | Introduction of a $1.6M lifetime transfer balance cap on amounts that can be transferred towards funding a pension in retirement phase. |
| 2017 | TRIS tax exemptions removed | The tax exemption on earnings derived from assets supporting a TRIS removed unless the member is retired, attains 65 or satisfies another specified condition of release. |
| 2016 | Related party loan clarifications released | The ATO’s Practical Compliance Guideline PCG 2016/5 sets out ‘safe harbour’ criteria so SMSF with LRBAs that satisfy the ATO will generally be considered as dealing at arm’s length. |
| 2016 | Regulation of collectables and personal use assets | All investments in collectables and personal use assets, eg, art-work, antiques and memorabilia even those acquired prior to 2011, became subject to the strict rules under reg 13.18AA of SISR. |
| 2015 | Look through treatment for bare trusts | Income tax ‘look through’ treatment for bare trusts used as part of limited recourse borrowing arrangements (LRBAs) introduced for tax purposes. |
| 2015 | Terminal medical condition definition | The definition of terminal medical condition in reg 6.01A of the SISR was extended from 12 months to 24 months of expected death with an impact on deeds, insurance and benefit provisions. |
| 2015 | Death benefit case | Court confirmed in Munro v Munro [2015] QSC 61 that a BDBN made in respect of member benefits in an SMSF can last indefinitely. |
| 2014 | Changes to insurance rules | From 1 July 2014 regulated superannuation funds can only provide insured benefits consistent with conditions of release precluding new coverage for ‘own occupation’ total and permanent’ disability and trauma insurance (subject to certain grandfathering for pre-1 July 2014 policies). |
| 2014 | Continuance of custodial arrangements after loan is repaid | ATO legislative instrument SPR 2014/1 released confirming that an asset acquired under an LRBA can remain in the name of the holding trustee after the loan is repaid without giving rise to in-house asset concerns subject to certain provisos. |
| 2013 | Excess contribution laws | New laws introduced for excess concessional and non-concessional contributions. The effect was that an excess concessional contribution could be released from the fund and taxed at the member’s personal tax rate. |
| 2013 | Covenants | The covenants (eg, to act honestly, prudently and in the best financial interests of members) in ss 52B and 52C of the Superannuation Industry (Supervision) Act 1993 (Cth) (SISA) apply to the governing rules of all SMSFs even though they are not expressly contained in the deed or governing rules. |
| 2012 | Div 293 tax | Division 293 tax introduced to increase the contributions tax on concessional superannuation contributions for individuals with income greater than $300,000 a year. This threshold was subsequently lowered to $250,000. |
| 2012 | Low income superannuation contribution | Government low income superannuation contribution came into effect, providing for a government contribution of 15% of eligible contributions up to a maximum of $500 for eligible individuals on adjusted taxable incomes of up to $37,000. |
| 2011 | Regulation of collectables and personal use assets | All newly acquired investments by SMSF trustees in collectables and personal use assets subject to strict rules under reg 13.18AA of SISR. |
| 2011 | Trading stock exception removed | Removed the trading stock exception to the capital gains tax primary code rule for certain assets (primarily shares, units in a trust and land) owned by a complying superannuation entity. |
| 2010 | Borrowing laws | Borrowing laws were amended to allow for LRBAs under s 67A of the SISA. |
| 2008 | Definition of spouse amended | The definition of spouse in s 10(1) of SISA was changed to include same sex relationships. |
| 2007 | Borrowing laws | Borrowing laws were amended to allow funds to borrow on a limited recourse basis to acquire permitted assets (ie, via LRBAs). |
| 2007 | Terminal Medical Condition benefits | New laws and regulations enacted in early 2008 allow persons with a ‘Terminal Medical Condition’ to access their super as a lump sum tax-free if a person was expected to die within 12 months of the diagnosis. |
| 2007 | Substantial super reforms | Major reform of the superannuation system took effect including substantial reductions to contribution limits and tax free benefits after 60. The reasonable benefits limits were removed and many other changes made. |
| 2007 | New income streams | New account-based income stream (pension) and new transition to retirement income stream (TRIS). |
| 2006 | Compulsory cashing abolished | Compulsory cashing rules when a member attained 65 and retired or turned 75 years abolished, allowing members to accumulate indefinitely until they die. |
| 2006 | Undeducted contributions | New cap on undeducted contributions applied during 10 May 2006 to 30 June 2007 of $1 million and generally $150,000 p.a. from 1 July 2007. |
| 2006 | Contributions splitting | Members can split contributions received after December 2005 with their spouse. Only 85% of deductible contributions can be split. |
| 2006 | Allocated pension changes | New, longer life expectancy pension valuation factors (PVFs) apply to pensions commenced after December 2005. Pensions commenced prior to January 2006 continue to use the old PVFs. |
| 2006 | Market linked pension changes | The term of a pension commenced after December 2005 includes the option of the member’s 100th birthday less their age at commencement of the pension, eg, if member is 65, they can choose a term of 35 years. The member may also choose the pension to be paid to the spouse’s 100th anniversary. |
| 2005 | DBPs transitional relief ceased | SMSFs can no longer commence DBPs. From 12 May 2004 to 31 December 2005, SMSFs were required to satisfy certain criteria before a DBP could commence. |
| 2006 | Non-commutable pensions introduced | Members can now access a non-commutable allocated or market-linked pension on attaining preservation age. Older deeds may need to be amended to ensure eligible members can access these pensions. |
| 2004 | Market linked pensions | This new type of pension was introduced with unique features. |
| 2004 | Gainful employment rules eased | Persons under 65 do not need to satisfy the gainful employment test. |
| 2004 | Changes in the rules relating to when benefits paid | New test for when a benefit must be paid or commenced. Certain deeds needed updating to ensure compliance. |
| 2004 | Restrictions placed upon DBPs | Members of SMSFs could no longer be paid DBPs unless certain transitional rules were satisfied. |
| 2003 | Pro-rating rules for pensions | Pensions commencing after September 2003 have new minimum pro-rating rules. |
| 2003 | PDSs introduced | Upon certain events, a PDS may have to be issued to members. |
| 2003 | Government co-contributions introduced | Government co-contributions made to a fund. Many deeds only contemplated employer and member contributions. |
| 2002 | Greater flexibility with regards to contributions and compulsory cashing introduced | Certain deeds needed updating to ensure compliance and to ensure internal roll-over provisions could be utilised. |
| 2001 | Internal roll-overs of super pensions now treated differently | Certain deeds needed updating to ensure compliance and to ensure internal roll-over provisions could be utilised. |
| 2000 | ATO replaced APRA as the regulator of SMSFs | Certain deeds needed updating to ensure compliance. |
| 1999 | Section 17A introduced – the member/trustee rules | The member/trustee structure of all SMSFs needed to be reviewed to ensure that s 17A was not being breached – some deeds required updating in order to ensure compliance. |
| 1999 | BDBNs introduced | Previously, SMSF trustees had a discretionary power as to whether and to whom to pay a member’s benefit upon death – all deeds needed to be updated to allow members to now make BDBNs to bind the trustee to pay their benefit to nominated person(s). |
Related articles/webinars:
- Advantages of the DBA Lawyers SMSF deed (2026-27)
- The world is changing – is your SMSF deed up to date?
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This article is for general information only and should not be relied upon without first seeking advice from an appropriately qualified professional. The above does not constitute financial product advice. Financial product advice can only be obtained from a licenced financial adviser under the Corporations Act 2001 (Cth).
Note: DBA Lawyers presents monthly online SMSF training. For more details or to register, visit www.dbanetwork.com.au or call 03 9092 9400.
For more information regarding how DBA Lawyers can assist in your SMSF practice, visit www.dbalawyers.com.au.
By Daniel Butler, Director ([email protected]) and Cassandra Hurley, Lawyer ([email protected]), DBA Lawyers
DBA LAWYERS
21 August 2026
