Self-managed superannuation funds are now expected to be dragged into funding a national compensation pool for victims of poor financial advice, despite being largely locked out of its benefits. The government had previously signalled SMSFs could opt out of a special levy for the Compensation Scheme of Last Resort.
A funding shortfall of at least $190 million this financial year has changed that equation. Industry bodies now expect SMSFs will be included to help plug the gap.
Under a contribution model outlined by government, the $1.6 trillion SMSF sector would tip in up to $40 million toward the special levy. That is capped as a maximum contribution, not an open-ended charge.
With more than 670,000 SMSFs registered across Australia, the sector-wide bill translates to a top levy of about $60 per fund. Initial projections had suggested SMSFs might face closer to $150 a year each.
Many SMSF trustees typically rely on tailored advice and are often excluded from consumer remediation frameworks designed for retail clients. Having this group underwrite a scheme they cannot easily use has created fresh debate about fairness across superannuation segments.
