On 30 June 2026, Parliament passed important amendments to section 17A of the Superannuation Industry (Supervision) Act 1993 (Cth) (SISA) as part of the Treasury Laws Amendment (Delivering an Efficient and Trusted Tax System) Bill 2026 (Bill).
What are the trustee/member rules
Section 17A of the SISA sets out the rules that determine whether a superannuation fund qualifies as an SMSF.
The core requirement is that every member of the fund must also be a trustee (or a director of the corporate trustee). This reflects the fundamental principle that SMSF members control the management of their fund.
However, there are various situations where a member cannot personally perform the trustee role, such as where they become mentally incapacitated. Accordingly, s 17A contains exceptions to the general rule that allow for another person to act in the place of a member at the trustee/director level without causing the fund to cease being an SMSF.
The changes
The amendments introduced by the Bill deal with circumstances where a Public Trustee is appointed to manage a member’s affairs. Before the changes, where a Public Trustee was managing a person’s affairs, they were not able to take steps to ensure the person’s SMSF satisfied the definition of an SMSF, as the legislation required an individual to act in the relevant role.
While s 17A has allowed a legal personal representative (LPR) to act in place of a member, a Public Trustee acting as an LPR of a person could not itself be a trustee or member. Thus, they could not act in place of the relevant member to satisfy the trustee-member rules in s 17A of SISA.
The amendments introduce a further exception that empowers a Public Trustee to approve a person to be the trustee of an SMSF or director of an SMSF trustee company, thus enabling the fund to meet the definition of an SMSF.
The approval must be in writing by the Public Trustee, and the person appointed must have appropriate qualifications and hold all necessary licenses to perform the duties or services as trustee or director. If these conditions are met, the fund will retain its status as an SMSF.
Importantly, the changes allow for the person appointed to be remunerated for their services or duties as trustee or director.
The rules are not specific on how a person is to be ‘appropriately qualified’ to carry out the role of a trustee/director. Further, the administrative steps and requirements of a Public Trustee in carrying out this function are not yet known.
Further steps are needed to appoint a trustee or director
It is important to remember that the rules provided in s 17A of the SISA are merely a definition of an SMSF and do not mandate or cause any person to be appointed as a trustee or director.
Further steps will typically be required for a person to be appointed to such roles. Accordingly, the relevant documentation must be considered and appointments made in accordance with the SMSF governing rules and other relevant documents.
The DBA governing rules
The DBA SMSF Governing Rules have been updated from 30 June 2026 to cater for these changes to s 17A of the SISA. That is, the DBA rules allow for a person nominated by a Public Trustee to be appointed and act in the role as an SMSF trustee/director for an SMSF. Again, this does not itself cause or mandate that such a person must be appointed. Naturally we would be pleased to assist with any SMSF succession strategies.
Conclusions
The changes made by the Bill are welcome additions that deal with a complex and difficult situation that a small number of SMSFs have faced in the past.
The DBA Governing Rules are updated at least yearly to account for the latest legislative changes and strategies.
Related articles/webinars:
- Advantages of the DBA Lawyers SMSF deed (2026-27)
- The trustee–member rules explained: Part 1
- The trustee–member rules explained: Part 2
- Planning your exit: a guide to SMSF succession planning — Part 1
- Planning your exit: a guide to SMSF succession planning — Part 2
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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 Shaun Backhaus, Director ([email protected]) and Daniel Butler, Director ([email protected])
DBA LAWYERS
3 July 2026
