Quick Answer The Government has proposed mandatory SMSF trustee education for new funds, to be completed before the fund is registered. Treasury analysis points to about three hours of training modelled on the ATO’s existing SMSF course, but no legislation has been released. Existing trustees already face a related tool: the ATO can issue an education direction after a breach, often one reported by the fund’s auditor.
Who This Guide Is For
- People planning to set up an SMSF in 2026–27
- Accountants and advisers who establish SMSFs for clients
- Existing trustees who want to understand ATO education directions
What Has Been Announced?
On 19 August 2026, Assistant Treasurer and Minister for Financial Services Daniel Mulino announced a consumer protection package, with details in a Treasury fact sheet. It follows the collapse of the Shield and First Guardian schemes, where the Minister noted SMSF investors had lost more than $100 million.
The fact sheet lists seven SMSF measures. Mandatory trustee education before registration is one. The others include an ATO power to block rollovers into new funds under investigation, uniquely identifiable fund bank accounts, a written investment strategy at set-up, more ATO data on advisers involved in establishment, and a rise in the SMSF supervisory levy from $259 to $295.
What Do We Know About Mandatory SMSF Trustee Education?
Speaking at the ASF Audits Technical Seminar, SMSF Association CEO Peter Burgess said a separate Treasury impact analysis expects all trustees of new SMSFs to complete about three hours of training, modelled on the ATO’s existing course (SMSF Adviser, 24 September 2026). That course has three modules covering setting up, running and winding up an SMSF, which together take close to three hours. Burgess noted the modules do not cover fees and running costs.
| Question | Position at 27 September 2026 |
|---|---|
| Who must complete it? | Trustees of new SMSFs, before registration |
| How long? | About 3 hours, per Treasury’s impact analysis |
| Which course? | Modelled on the ATO course; not confirmed as ATO-only |
| Existing trustees? | No requirement announced |
| Start date? | Not announced |
| Is it law? | No. No draft legislation has been released |
The SMSF Association does not support one-size-fits-all SMSF trustee education and wants industry providers to deliver tailored training, so the final design may change.
What Is an ATO Education Direction?
For existing funds, the ATO can already give an education direction under section 160 of the Superannuation Industry (Supervision) Act 1993. PS LA 2026/1 sets out how it decides. A trustee given a direction must:
- Complete an approved SMSF trustee course within the set period, usually at least 28 days
- Give the ATO evidence of completion
- Sign or re-sign a trustee declaration within 21 days of finishing the course
Failing to comply attracts an administrative penalty of 5 penalty units. All trustees are responsible for compliance, so a trustee can receive a direction even without an active role in the breach. The ATO generally uses directions where knowledge gaps contributed to a breach, not where trustees knew they were breaking the rules.
How Does This Connect to Your SMSF Audit?
Every worked example in PS LA 2026/1 starts with an approved auditor reporting a contravention, usually through an Auditor Contravention Report (ACR). Commonly reported breaches include:
- Loans or financial assistance to members
- In-house assets above the 5% limit
- Fund assets mixed with personal or business assets
- Illegal early access to super
Minor breaches caused by knowledge gaps may lead to an education direction. Deliberate or serious breaches, such as paying benefits with no condition of release, can lead to disqualification instead. For more on current ATO focus areas, see transactions on the ATO’s radar.
What Should Trustees and Accountants Do Now?
Setting up a new SMSF
- Complete the three free ATO SMSF trustee education modules — Setting up an SMSF, Running an SMSF and Winding up an SMSF — and keep the completion evidence.
- Get a written estimate of set-up, accounting, audit and levy costs, since the ATO modules do not cover fees.
- Open a bank account clearly held in the fund’s name.
- Sign a written investment strategy before the fund starts investing.
- Have every trustee sign the ATO trustee declaration within 21 days of appointment.
Running an existing SMSF
- Use the Running an SMSF module as a refresher for new or less active trustees.
- Work through our September 2026 SMSF audit checklist with your accountant before the audit.
- Rectify known issues, such as member loans, before year-end.
- If a breach has occurred, ask your accountant whether voluntary SMSF trustee education is appropriate. The ATO treats it as a factor against giving a direction, but it does not rule out penalties or other compliance action.
Need an Independent SMSF Audit?
Mint Super Audits is an independent SMSF audit firm based in Melbourne, Victoria, providing SMSF audit services to trustees, accountants, tax agents, advisers and administrators across Australia. We audit independently of your accounting and advice, in line with APES 110. Our article on the ASIC crackdown on SMSF auditors explains why that matters.
Accountants establishing new funds can talk to us about audit arrangements for their clients. Trustees can ask what evidence an auditor expects to see on file.
Book a free 30-minute discovery call with Mint Super Audits.
FAQs
Is mandatory SMSF trustee education law yet?
No. It was announced on 19 August 2026, but no draft legislation has been released and no start date has been set.
How long will the mandatory SMSF trustee education take?
Treasury’s impact analysis, as reported on 24 September 2026, points to about three hours. That matches the ATO’s existing three-module SMSF course. The final format may change after consultation.
Will existing SMSF trustees have to complete the new SMSF trustee education?
Nothing announced so far applies to existing funds. Existing trustees can still receive an ATO education direction if their fund breaches the rules.
What happens if I receive an ATO education direction?
You must complete an approved course within the set period (usually at least 28 days), give the ATO evidence of completion, and sign or re-sign a trustee declaration within 21 days of finishing. Not complying attracts an administrative penalty of 5 penalty units.
Can an SMSF audit lead to an education direction?
Yes, indirectly. If the auditor reports a contravention to the ATO, the ATO may rely on that report when deciding whether to give an education direction.
Official Sources
- Treasury — Protecting Consumers and the Promise of Superannuation in an Evolving Financial Ecosystem (fact sheet, 19 August 2026)
- Australian Taxation Office — PS LA 2026/1: SMSF education directions for contraventions of the SISA
- Australian Taxation Office — SMSF online courses: Setting up an SMSF
- SMSF Adviser — New education requirements linked to ATO’s existing courses (24 September 2026)
- SMS Magazine — Govt announces new fund safeguards (19 August 2026)
- SMS Magazine — Majority of SMSF reforms supported (25 August 2026)
General Information Disclaimer
This article provides general information only and does not constitute financial, tax, legal or investment advice. The reforms described are proposals and may change before becoming law. SMSF trustees should seek advice from appropriately qualified professionals based on their specific circumstances.
