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Alert: Is Your SMSF Deed Up to Date?
 
 
   

Alert: Is Your SMSF Deed Up to Date? (Part- 1)

News | Mehak Gaba | Released: 24/10/2025 | Read: 5 Mins

It is a common misconception that superannuation law alone governs how an SMSF must operate. In reality, the governing rules of the fund (the trust deed) dictate how the fund applies superannuation law in practice.

 

There are many areas of law such as the SIS Act, SIS Regulations, ATO rulings, court decisions, and common strategies which change after the fund’s establishment. These developments often require the trust deed to be updated to remain compliant.

 

Keeping your SMSF trust deed current ensures that trustees have the necessary powers to take advantage of legislative changes. It’s a myth that a deeming clause automatically incorporates all legal updates into the deed. Trustees must understand that their authority and powers come only from the fund’s governing rules.

 

Your SMSF deed should be a “living and breathing” document — one that evolves with the law. Regular updates ensure your fund operates within its powers, gives confidence to auditors, and protects trustees from potential administrative penalties for non-compliance.
   

Reduced eligibility age  from 60 to 55 for downsizer contribution, effective from 1st January 2023.

   

From 1 January 2023, the eligibility age for making a downsizer contribution was reduced from 60 to 55.

 

This means individuals aged 55 years or older can now contribute up to $300,000 from the sale of their main residence into their superannuation fund, provided they meet the eligibility requirements (such as owning the home for at least 10 years and it being their main residence).

 

Why This Change Matters for Your SMSF Deed?

 

Many older SMSF trust deeds refer specifically to the previous age limits or contain restrictive wording tied to the law at the time of establishment.


If the deed hasn’t been updated, it may not authorise trustees to accept downsizer contributions under the new rules especially for members aged between 55 and 59.

 

Updating your SMSF trust deed ensures:

  • The trustee has explicit power to accept downsizer contributions at the reduced age of 55.

  • The deed aligns with current contribution types and definitions under the SIS Regulations.

 

In short, this legislative change expands contribution opportunities for members nearing retirement but trustees can only take advantage if their SMSF deed reflects the updated rules.
   

First Home Super Saver Scheme release amount has been increased from $30,000 to $50,000, effective from 1st July 2022.
   

The First Home Super Saver Scheme (FHSSS) release amount has increased from $30,000 to $50,000 effective 1 July 2022. This means that eligible members can now request a higher amount of their voluntary contributions (plus associated earnings) to purchase their first home.

 

Why this matters for your SMSF deed:

  • Many older SMSF deeds only reference the previous $30,000 FHSS release limit. If the deed still mentions the old $30,000 limit, auditors may question whether the trustee has authority to release the new $50,000 maximum.

  • Older deeds did not reference FHSS at all, since the scheme was introduced on 1 July 2017.

  • Trustees need explicit powers in the deed to accept and release contributions under the FHSSS.

In short, an up-to-date trust deed provides auditors with the confidence that all actions taken by the trustee are supported by the fund's governing rules, facilitating smoother audit processes and reducing the likelihood of compliance issues.
   

Join my webinar on 30th October, 2025

Expanded allowable investments to digital assets, non-fungible tokens (NFT)& Crypto currencies.

   

Trustees are now able to invest in non-fungible tokens (NFT) and in Crypto currencies like Bitcoin or similar type of digital or media assets purchased from authorized exchanges.

 

Our trust deed includes all necessary powers in the investment strategy, including clauses permitting investments in cryptocurrencies. If your deed is not up to date, we recommend having it updated promptly.
   

Increase Work Test exemption age from 65 to 67 years
   

The Work Test exemption age has increased from 65 to 67. This means that people up to 67 years old can now make contributions to their superannuation without needing to meet the work test.

 

If you are 65 or 66 years old, this update is especially important for you because:

  • Previously, you would have needed to meet the work test to make personal contributions to your super.

  • With the Work Test exemption now extended to age 67, you can make contributions without meeting the work test, giving you an extra opportunity to boost your super.

  • To take advantage of this, your SMSF deed should be updated to reflect the new rules, ensuring any contributions you make are fully compliant.

From 1 July 2022, you can make or receive non-concessional personal and salary sacrifice contributions without meeting the work test (or exemption), but you must still meet the work test (or exemption) to claim a deduction for personal superannuation contributions so they are treated as concessional contributions.
   

How can Trustdeed help?
   

We will be sharing 4 to 5 newsletters of the SMSF updates that should be included in your SMSF deed. Stay tuned!

Need help updating your SMSF deed? Contact us at 02 9684 4199.

 

Get it all in one place – we handle both regular SMSF updates and the 5-year SMSF update.

 

Fast, simple, and hassle-free!

  • One-time SMSF update: $165

  • Unlimited 5-year SMSF updates: $330
   

Visit www.trustdeed.com.au for more details or call us on(02) 9684 4199
   

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