What had the biggest impact on the sector in 2025?

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Looking back on 2025, there were several major changes that helped to re-shape the sector

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Peter Burgess, CEO, SMSF Association
 
Again, the decision not to proceed with the taxation of unrealised capital gains brought welcomed relief. It meant advisers could have more rational conversations with their clients about the merits of super, and it helped to restore confidence in the sector. 
 
Liam Shorte, director, SONAS Wealth
 
The Division 296 tax has meant that many DIY SMSF trustees sought out advice for the first time as they had been able to manage their fund and investments well over the years but when faced with even the prospect of dramatic changes to the taxing of their super, they sought advice, which is a positive outcome.
 
The issue was that while many individuals were not going to be affected by Div 296, it was a totally different story if one of a couple passed away as the many more would then move beyond the $3 million threshold. Hence the nickname among professionals as “The Grandma Tax”. It will continue to affect these people but the proposed changes including indexation make it less harsh. 
 
David Busoli, principal, SMSF Alliance
 
The biggest impact on the SMSF sector came from regulatory and compliance changes combined with demographic and technological shifts. The looming Division 296 tax dominated strategic planning, while the ATO’s intensified focus on governance and auditor independence reshaped trustee responsibilities and professional oversight. The most visible effect was the focus on valuations, particularly for property, and on the underlying assets and activities of “private” entity SMSF investments. 
 
Naz Randeria, director, Reliance Auditing Services
 
The biggest impact, for me, is the uncertainty these ever-changing rules create for Australians who are simply trying to save enough to retire with dignity. Real dignity comes from being able to stand independently in retirement – without relying on future generations or feeling compelled to ask for help. When policy shifts undermine confidence and stability, they threaten that very goal, affecting not just people’s finances but their long-term sense of security and ability to plan for a dignified future. 
 
Shelley Banton, director, Super Clarity
 
The increased emphasis on market valuations resulting from the impending draft Div 296 legislation, especially for complex assets. In line with the Better Targeted Superannuation Concessions Factsheet released by Treasury on 13 October 2025, SMSF members whose balances are above the $3 million and $10 million as of 30 June 2027 will be affected.  
 
Treasury released its draft legislation shortly before Christmas, with a brief consultation period.  
 
Once again, stakeholders will need to respond quickly and thoroughly, as the sector anticipates a limited opportunity for formal feedback or industry engagement.  
 
Uncertainty surrounding the draft legislation has heightened the pressure on market valuations. SMSF auditors are now under greater pressure to scrutinise the evidence supporting asset values, particularly those assets with no readily available market prices.  
 
SMSF members with material investments in unlisted entities or business real property must ensure their data is not only objective but also sufficiently robust to withstand audit and regulatory review.  
 
The ATO is using data monitoring to identify non-compliance, and the number of Reg 8.02B breaches reported by SMSF auditors has increased, now accounting for over 12 per cent of all breaches reported to the ATO.  
 
Nicholas Ali, head of SMSF technical services, Neo Super
 
To my mind there is not one thing that had the biggest impact per se, but a number of key impacts. Firstly the regulatory changes, with Division 296 extra tax on superannuation member balances and the uncertainty and suspicion that has wrought. 
 
Secondly the rapid growth mentioned above, which has been fueled by a rising interest in the retirement savings of younger generations.
 
Economic conditions (and fear-mongering) played a big part in shaping super balances in 2025 – we were all told the sky was going to fall in because of US tariffs, which panicked many investors, and provided great opportunities for those who did not believe the doomsayers. The increase in compliance and governance has also shaped the sector. Finally the ubiquitous digital transformation, which has impacted everything from ETFs to administration. 
 
 
 
 
Keeli Cambourne
January 8, 2026
smsfadviser.com

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