Daniel Mulino Overhauls Super Rules: ATO Gets Veto Power on SMSF Transfers

Australia’s Assistant Treasurer Daniel Mulino has announced sweeping superannuation reforms designed to stop dodgy switching schemes that have cost retirees millions. The Tax Office will gain power to veto transfers from large super funds into self-managed superannuation funds (SMSFs). New SMSF trustees must pass basic knowledge tests, maintain separate bank accounts, and disclose financial adviser involvement and fees. The changes target telemarketers and advisers who pressure people into risky fund switches.

What the ATO can now block

The Tax Office will have authority to prevent people from moving money from large super funds into SMSFs under the new rules. This power targets schemes where advisers push vulnerable retirees into self-managed funds that often charge higher fees and carry greater investment risk. The veto aims to stop the fear-based sales tactics that have devastated retirement savings for thousands of Australians.

New SMSF compliance requirements

Newly established SMSFs must meet stricter standards announced by Mulino on August 19. Trustees must pass basic knowledge requirements, maintain a uniquely identifiable bank account, and pre-write their investment strategy. SMSFs must also disclose whether a financial adviser was involved in their establishment and what fees were charged. These steps create a paper trail to catch fraudulent advisers.

The gap in retirement advice

While the reforms address fund switching scams, a significant problem remains: many Australians struggle to find affordable, independent retirement advice. People need help with critical decisions like whether to stay with their current fund, when to start drawing income, and how the age pension fits their plans. Most financial advisers now offer only ongoing investment management, not one-off or short-term advice packages that retirees actually need during the transition into retirement.

Why this matters for retirees

The reforms target a real problem: telemarketers and dodgy advisers have systematically moved people out of safe, low-cost industry super funds into risky SMSFs with inflated fees. Stopping these transfers protects retirement savings from erosion. However, the reforms do not solve the broader issue of access to affordable, independent guidance when retirees face major decisions about their money.

Final Thoughts

Mulino’s reforms give the ATO real teeth to stop predatory fund switching, protecting vulnerable retirees from losing savings to scams. The gap remains: Australians still lack affordable access to independent advice when they need it most, during the critical years before and after retirement.

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The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.