Changelog - Smarter SMSF Deed Rules

This table provides an update of the changes made to the Smarter SMSF trust deed  (version control):

July 2026

Ref: SM2-Deed-2026-07 - applied to New SMSF (incl. QROPS), Deed of Variation and Lost Trust Deed

Summary of Changes:

Rule 2 – Trusteeship of the Fund

What changed:

A new Trustee duty has been added requiring each Trustee to provide any information or documents required by the Trustee or a SMSF Professional under AML/CTF Laws. This includes proof of identity and evidence of the source of any funds to be contributed to the Fund.

This duty supports the obligations of SMSF professionals who become Reporting Entities under the AML/CTF framework from 1 July 2026 and must conduct customer due diligence on the Fund and its Members.

Rule 3 – Membership of the Fund

What changed:

The Member obligations on joining the Fund have been expanded into a structured list. In addition to existing obligations, each Member must now:

• act as Trustee or director of the Corporate Trustee where required;
• provide their Tax File Number;
• provide any information or documents required under AML/CTF Laws, including proof of identity;
• evidence the source of any funds to be contributed to the Fund, and notify the Trustee if the Member is, or becomes, a Politically Exposed Person (PEP); and
• provide any other information the Trustee may require including relevant insurance details.

Politically Exposed Person (PEP) status triggers enhanced due diligence obligations under the AML/CTF regime.

What changed:

New Rule 6.5 has been inserted. The Trustee may decline to accept a Contribution, Rollover Superannuation Benefit or Transfer Superannuation Interest where:

• the Member has not provided information required under AML/CTF Laws; or

• acceptance would otherwise cause the Fund or an SMSF Professional to breach AML/CTF Laws.

This gives the Trustee express authority to refuse transactions on AML/CTF grounds without breaching the Fund’s governing rules.

Rule 14 – Trustee Responsibilities

What changed:

Two new AML/CTF Trustee responsibilities have been added:

• Comply with AML/CTF Laws to the extent they apply to the Fund or to any SMSF Professional engaged by the Fund.

• Take reasonable steps to obtain from each Member any information required by a SMSF Professional to meet their obligations under AML/CTF Laws.

A new Division 296 obligation has also been added: where a Member’s TSB Reference Amount exceeds either or both of the Large Superannuation Balance Threshold and Very Large Superannuation Balance Threshold, the Trustee must calculate and report Division 296 Fund Earnings in accordance with the Superannuation Laws.

A new Guide paragraph has been added explaining that the Trustee has the power to suspend, delay or refuse transactions where AML/CTF concerns arise, and that the Trustee is not liable to any Member for any loss or delay arising from the good faith exercise of this power.

What changed:

Two additions have been made to the Trustee’s powers:

• AML/CTF compliance power: a new express power to suspend, delay or refuse to accept any Contribution, Rollover Superannuation Benefit or Transfer Superannuation Interest, or to apply enhanced due diligence measures, where required under AML/CTF Laws or where the Trustee has reasonable grounds to suspect a transaction may breach AML/CTF obligations.

• Post Wind-up Powers and Obligations (new sub-rule): notwithstanding the winding up or termination of the Fund, the Trustee (including any Former Trustee) retains all necessary powers to:
  • finalise the affairs of the Fund;
  • receive, pursue or settle any Compensation Payment or Residual Amount, including class action settlements and regulatory scheme payments;
  • lodge or respond to tax, legal or compliance matters, including amended assessments or audit adjustments;
  • receive and hold late-arriving assets or proceeds (insurance payouts, investment distributions, refunds);
  • distribute amounts to former Members or their Legal Personal Representatives based on Superannuation Interest Entitlements at the date of winding up;
  • engage professional advisers and deduct reasonable expenses; and
  • take any other step necessary to complete the Fund’s affairs.

These powers may be exercised even where the Fund has ceased to exist as a continuing trust. Where there are multiple Former Trustees, decisions require a simple majority.

Rule 18 – Fund Earnings

What changed:

A new operative provision has been added within Rule 18: where a Member’s TSB Reference Amount exceeds either or both the Large Superannuation Balance (LSB) or Very Large Superannuation Balance (VLSB) thresholds, the Trustee must calculate Division 296 Fund Earnings in accordance with the Superannuation Laws for the relevant income year.

New Rule 18A – Compensation Payments and Residual Amounts

An entirely new Rule 18A has been inserted after Rule 18, providing a framework for the receipt, allocation and distribution of Compensation Payments and Residual Amounts:

• 18A.1 — The Trustee may receive or pursue a Compensation Payment or Residual Amount arising from fraud, negligence, misconduct, incorrect financial advice, product failure, restitution or statutory compensation schemes.

• 18A.2 — The Trustee may initiate or participate in any recovery action, including court proceedings and AFCA complaints.

• 18A.3 — Allocation follows a priority order: (1) specific Member to whom the compensation is directly attributable; (2) pro rata to affected former Members where compensation relates to multiple Members; (3) Reserve Account where attribution is unclear; (4) Fund Earnings if not otherwise attributable.

• 18A.4 — Where received post wind-up: establish a temporary account, distribute to former Members or their Legal Personal Representatives, deduct reasonable costs, and after 6 years pay unclaimed amounts to a registered charity or as permitted by law.

• 18A.5 — When allocating to former Members: amounts must remain within the superannuation environment and be paid to the former Member’s current complying fund; tax withholding obligations apply; deceased member payments go to Legal Personal Representatives; SuperStream requirements apply; and amended annual returns may be required for prior financial years.

Rule 21 – Taxes & Release Authorities (renamed)

What changed:

Rule 21 has been renamed from “What happens to Taxes, Excess Contributions Tax & Excess Transfer Balance Tax?” to the more concise “Taxes & Release Authorities”. The following substantive changes have been made:

• Division 296 Tax added: where a Member receives an assessment, determination, notice or liability for Division 293 Tax, Division 296 Tax or a Division 296 debt account discharge liability, the Trustee must give effect to the conditions of that notice in accordance with the Superannuation Laws.

• Release Authority provision updated to explicitly include Default Commutation Authority alongside Release Authority.

The Division 296 debt account discharge liability is the mechanism by which a Member can elect for the Fund to pay their Division 296 Tax directly, with the amount debited against their Member interest.

Rule 25 – Accessing Member Superannuation Benefits

What changed:

New Rule 25.10 – Special Rules to achieve QROPS and ROPS status

A new Rule 25.10 has been inserted providing a mechanism for the Fund to adopt QROPS (Qualifying Recognised Overseas Pension Scheme) status to receive a UK pension transfer. The rule includes:

1. The Trustee may by Resolution make Rules to alter the Fund to ensure it meets QROPS requirements.
2. The resolution operates to amend or alter Rule 3 and Rule 25 to ensure QROPS status is achieved.
3. A resolution under this rule is declared a Special Rule of the Fund.
4. The Trustee must not accept a transfer of benefits from a UK registered pension scheme unless: (i) the member has attained the Normal Minimum Pension Age under the UK Act; or (ii) the member’s benefits have been crystallised prior to transfer.
5. Transitional rule: where a member has attained the current Normal Minimum Pension Age but not the future transitional age, sub-rule (d)(i) does not apply and crystallisation under (d)(ii) is the only permitted pathway.
6. Protected Pension Age: the Trustee may accept a transfer where the member holds a Protected Pension Age, subject to written confirmation from the transferring scheme and conditions to retain the Protected Pension Age under the UK Act being satisfied.

The SM2 QROPS deed (QROPS-SM2-Deed-2026-07) contains the full QROPS-specific operating rules. Rule 25.10 provides the gateway to adopt those rules by Trustee resolution.

Rule 28A – Residual Amounts Received after Winding Up (new)

What changed:

A new Rule 28A has been inserted immediately after Rule 28, specifically addressing amounts received by the Fund or a Former Trustee after the Fund has been wound up:

• 28A.1 — A Residual Amount received after wind-up may be dealt with by the Trustee or Former Trustee in accordance with Rules 18A and 15.4.

• 28A.2 — The Trustee or Former Trustee may receive, hold and distribute amounts; determine entitlements based on Superannuation Interests at winding up; pay amounts to Legal Personal Representatives; and engage professional services and deduct reasonable costs.

• 28A.3 — If a former Member cannot be located after a reasonable search and 6 years have passed, the Trustee may pay their share to a registered charity with deductible gift recipient (DGR) status, or to the Commonwealth under unclaimed moneys legislation.

• 28A.4 — Before making such a payment, the Trustee must: publish a final notice on the Fund’s website (if any) and in a newspaper; provide 60 days’ notice to the ATO; and maintain permanent records of the payment.

Rule 31 – Definitions

New definitions added:

Updated definitions:

• Auditor — updated to reference “approved SMSF auditor” to align with current ASIC registration requirements.

• Superannuation Laws — expanded to include: Income Tax (Transitional Provisions) Act 1997; Taxation Administration Act 1953; Treasury Laws Amendment (Building a Stronger and Fairer Super System) Act 2026; and Superannuation (Building a Stronger and Fairer Super System) Imposition Act 2026.

• Taxes — updated to expressly include Division 296 Tax alongside Division 293 Tax.

• Tax Laws — updated to include the Income Tax (Transitional Provisions) Act 1997.

September 2025

Ref:SM2-Deed-2025-09 - applied to New SMSF (incl. QROPS), Deed of Variation and Lost Trust Deed

Date Updated: 1 July 2025

Ref: SM2-Deed-2025-03 - applied to New SMSF (incl. QROPS), Deed of Variation and Lost Trust Deed

Ref: SM2-Deed-2025-03 - applied to New SMSF (incl. QROPS), Deed of Variation and Lost Trust Deed

Date Updated: 1 March 2025

Ref: NSF-Deed-2024-07, SDV-Deed-2024-07, LTD-Deed-2024-07, QROPS-Deed-2024-07 

Date Updated: 1 July 2024

Ref: NSF-Deed-2024-04, SDV-Deed-2024-04, LTD-Deed-2024-04, QROPS-Deed-2024-04 Date Updated: 17 April 2024  

Date updated: 17 April 2024

Ref: NSF-Deed-2023-07, SDV-Deed-2023-07, LTD-Deed-2023-07,QROPS-Deed-2023-07  

Date Updated: 1 July 2023

Ref: NSF-Deed-2022-07, SDV-Deed-2022-07, LTD-Deed-2022-07,QROPS-Deed-2022-07 

Date Updated: 1 July 2022

Ref: NSF-Deed-2021-07, SDV-Deed-2021-07  

Date Updated: 1 July 2021

The order form and templates have been updated to allow for orders with up to a maximum of 6 members in a SMSF - applies to both corporate trustees (directors) and individual trustees.

Ref: NSF-Deed-2020-03, SDV-Deed-2020-03  |  Date Updated: 10 March 2020

Amendment(s):

• Correction in Rule 6 guide that allows for a downsizer contribution to be made 'on or after 1 July 2018'.  Guide had stated as after 1 July 2018.
• Deletion of Rule 12.7 as duplicate of Rule 12.5
• Correction in Rule 25.1 to reference 25.2 when creating a special rule for income streams.
• Correction to Rule 25.8(g) to show as 'and' in the following section - '...between 18 years of age and 25 years of age AND be financially dependent upon the deceased superannuant at the time of the Member's death.

Ref: NSF-Deed-2019-07, SDV-Deed-2019-07  |  Date Updated: 1 July 2019

Amendment(s):

• New definition - ADUS meaning automated deed update service
• Rule 29 - added into rule the ability to change the fund rules as part of the 'automated deed update service' (ADUS).
• Updated PDS for new financial year 2019/20

Reason(s):

Smarter SMSF is in the process of developing an automated deed update service that provides you with the option to subscribe to a service that keeps the deed up-to-date as and when any changes are made.

Ref: NSF-Deed-2018-12, SDV-Deed-2018-12  |  Date Updated: 7 December 2018

Amendment(s):

• Added new sub-clause to Rule 15 - ff)(v) Carrying on a business: subject to the Superannuation Laws and the fund retaining its Complying SMSFs status, to carry on a business or to undertake business like activities.

Reason: 

Any form of significant property development, in particular to comply with the business real property definition is treated as a property development business as opposed to "property investment."  An express power to conduct a business has now been added, in addition to the incidental powers which form part of a businesslike activity (e.g. leasing, borrowing,  entering into contracts… money etc.).

Ref: NSF-Deed-09-2017, SDV-Deed-09-2017  |  Date Updated: 15 September 2017

Amendment(s):

• Amended Rule 25.1(c) by adding two parts to the clause where an individual that is in receipt of a TRIS satisfies a nil cashing condition
  • (i) specifically allows for a TRIS to move into retirement phase upon request (written notice) in accordance with the tax laws; 
  • (ii) allows for a replacement income stream of the TRIS to commute and re-purchase as an ABP.