As part of our ongoing commitment to transparency and continuous improvement, we would like to share a quarterly update on our B2B SMSF administration services and thank our accounting, financial planning, and mortgage-broking partners for their continued trust and collaboration.
Our B2B SMSF administration services have continued to grow, reflecting the increasing need for specialist, compliance-focused SMSF support. We have seen a clear trend toward partners transitioning SMSF administration away from in-house or fragmented arrangements to a dedicated specialist team, allowing for greater consistency, scalability, and peace of mind.
Current partner snapshot:
A mix of small, medium, large, and growing professional firms
Increasing transitions of SMSF administration from in-house or fragmented arrangements to a dedicated specialist team
Across these partnerships, our objective has remained consistent to remove the operational and compliance burden of SMSFs, deliver technically accurate and ATO-aligned outcomes, and allow our clients to free up time to focus on client relationships, strategic work, and business growth – without compromising governance or quality.
Looking ahead to the next six months, our focus will be on scaling processes, strengthening quality controls, and proactively supporting our clients with emerging regulatory changes, including Div296, succession planning considerations, and more complex SMSF structures. Our aim is to continue acting as a reliable extension of your team – quietly managing administration and compliance while you lead the client relationship.
Treasury has announced significant changes to the proposed Division 296 superannuation tax, now expected to be rebranded as the Better Targeted Superannuation Concessions (BTSC) tax. These revised measures are proposed to apply from 1 July 2026 and address several concerns raised under the original model.
Key structural change – realised earnings only
Under the revised approach, the additional tax will apply to realised superannuation earnings, rather than taxing unrealised gains based on movements in account balances. This brings the calculation more closely in line with existing income tax principles and materially reduces complexity.
Who is affected
The BTSC tax applies to individuals with a Total Superannuation Balance (TSB) exceeding $3 million. The tax is applied proportionately, based on how much of the member’s balance exceeds specified thresholds.
How the tax applies (high-level summary):
For balances above $10 million, a further 10% tax applies, resulting in a total tax rate of up to 40% on earnings attributable to that portion.
Both the $3 million and $10 million thresholds will be indexed to CPI, addressing a key criticism of the earlier proposal.
Administration and timing
Super funds (including SMSFs) will report realised earnings attributable to affected members. The ATO will calculate the tax liability across all of the member’s super interests. The first assessments are expected to be issued after 1 July 2027, in respect of the 2026–27 financial year.
Key Takeaway for Our Clients
While the revised BTSC model is more aligned with established tax concepts and removes the taxation of unrealised gains, it remains a material change for high-balance superannuation members. Forward planning around asset allocation, pension strategies, and fund structure will become increasingly important as implementation approaches.
We will continue to monitor legislative developments closely and provide practical guidance as further detail becomes available. Should you wish to discuss how these changes may affect your clients, or if you would like support transitioning SMSFs into our B2B administration service, please contact us.
We’re here to help you and your clients reach their financial goals.
Call us anytime at 0401 977 137 or book a call with us through the button below to speak to someone at a time that works for you.
You can also email us at [email protected] or fill in your details in the form below.
As we enter 2026, I would like to take the opportunity to wish you a Happy New Year and to share our outlook on the investment landscape, including the key macroeconomic and geopolitical considerations shaping portfolio positioning in the year ahead.
As always, our focus remains on constructing diversified portfolios for wholesale investors, targeting attractive risk-adjusted returns that are deliberately less correlated to traditional equity markets.
Looking ahead, markets are increasingly pricing in the possibility of further interest rate tightening during 2026, as inflationary pressures remain uneven across regions. In this environment, asset selection and capital structure discipline become increasingly important. While higher interest rates can create challenges for highly leveraged or growth-dependent assets, they can also present opportunities across real assets and income-oriented strategies where pricing power, contractual cash flows, or asset backing provide resilience.
Geopolitical developments remain an important consideration. Recent shifts in U.S. foreign policy toward Venezuela have influenced global energy markets and regional trade dynamics. Increased volatility in energy pricing can have downstream impacts across transportation, manufacturing, and other input-cost-sensitive sectors. We continue to monitor these developments closely, particularly where they may create second-order effects across real assets, inflation, and credit conditions.
Against this backdrop, our portfolio exposure continues to emphasise alternative asset classes with neutral or negative correlation to traditional public markets, with a greater weighting toward the following areas:
During May and June 2025, we introduced select clients to the Redcape Hospitality Fund following a secondary liquidity opportunity that allowed entry at a 5% discount to NAV, with full entitlement to the June 2025 quarterly distribution.
Clients entered at a unit price of AUD $1.4583, targeting a medium-term income and growth outcome. As at today, the fund’s NAV stands at AUD $1.61, with total distributions received of AUD 0.0812 per unit, resulting in a cumulative value of approximately AUD 1.69 per unit. This represents a total return of 16.19% over an eight-month period.
Redcape holds a high-quality hospitality portfolio valued at over AUD 1.1 billion, underpinned by strong asset fundamentals, including 93% freehold ownership and a concentration in Greater Sydney.
While opportunities of this nature are not always available, they demonstrate our ability to access off-market or secondary transactions that can deliver attractive risk-adjusted returns independent of broader equity markets.
If you would like to discuss how similar opportunities may fit within your portfolio, please feel free to contact me.
We appreciate your continued trust and wish you a successful and prosperous year ahead.
We’re here to help you and your clients reach their financial goals.
Call us anytime at 0401 977 137 or book a call with us through the button below to speak to someone at a time that works for you.
You can also email us at [email protected] or fill in your details in the form below.