Super Alert – 2 October 2026: APRA proposed update to SPS 530, ASIC 2026-27 supervisory priorities released

Welcome to the weekly KHQ Super Alert. This week APRA released a consultation paper on strengthening superannuation investment governance and a proposed update to SPS530 as well as an ‘APRA Explains’ article detailing its regulatory approach. The ATO released guidance on Division 296 reporting. AFCA published guidance on the impact of class action suits. Meanwhile ASIC released its 2026-27 supervisory priorities for the industries it regulates.

APRA – Consultation proposing amendments to trustee investment governance released

On 30 September 2026, APRA released a package of proposals intended to strengthen trustee investment governance and better protect members’ retirement savings. It comprises a consultation paper and a draft Prudential Standard SPS 530 Investment Governance for consultation. According to the media release ‘[t]he proposals build on substantial supervisory and enforcement activity and directly address shortcomings identified in APRA’s 2025 review of platform trustee practices.’

The proposed changes cover eight key areas of risk identified by APRA and include requirements for trustees to:

• ‘set and enforce member-level investment limits for higher-risk investments’;
• ‘strengthen the management of investment-related conflicts’; and
• ‘ensure their investment oversight capabilities and resources are commensurate with the size and complexity of their investment menus.’

The reform package also proposes various changes to codify and strengthen expectations for investment onboarding, monitoring, remediation, valuations and accountability.

The consultation period closes on 3 February 2027.

Click here and here for details.

ASIC – 2026-27 supervisory priorities released

On 30 September 2026, ASIC published its supervisory priorities for 2026-27 for the banking, superannuation, general insurance, life insurance and financial markets sectors to provide greater transparency of priorities and give industry early visibility on planned activities.

For the superannuation sector, ASIC’s focus for 2026-27 will be to:

• continue its multi-year review of superannuation member services; and
• launch reviews of trustee oversight of advice fee deductions and retirement outcomes.

The decision to release its supervisory priorities follows industry feedback and is intended to assist regulated entities to prepare and allocate resources appropriately. ASIC is encouraging boards and executives to consider its priorities and allocate resources and attention accordingly.

Click here for details.

AFCA – Guidance published concerning impact of class actions on individual complaints in wake of Shield and First Guardian collapses

On 30 September 2026, AFCA published a news release intended to clarify the impact of class actions commenced against superannuation trustees on consumers who either have, or intend to, lodge a complaint with AFCA.

The news release confirms that the class actions are separate from the AFCA process, and don’t automatically impact or prevent consumers from lodging or pursuing a complaint with AFCA. Whether a class action will impact an AFCA complaint depends on the specific circumstances of the complaint, including the issues raised and entities involved.

Where the same loss is claimed in both the class actions and the particular AFCA complaint, AFCA will consider the class actions and the implications for consumers.

Click here for details.

ATO – Update on Division 296 reporting for regulated super funds

On 24 September 2026, the ATO released guidance on the application of Division 296 tax which applies to members with large total super balances from 1 July 2026.

Superannuation trustees will need to report Division 296 relevant super earnings for members who fall within the relevant thresholds for Division 296 tax. The ATO intends to send requests for information (RFIs) to trustees via the Online Services for Business platform for their in-scope members, with trustees then having 28 calendar days to respond.

The guidance also provides that:

• for the 2026-27 income year, funds holding defined benefit interests that are not in retirement phase, and other super interests that are not based on a balance, should expect to receive Division 296 RFIs from November 2027;
• for the 2026-27 income year, all other regulated funds should expect to receive Division 296 RFIs from April 2028; and
• funds undergoing a successor fund transfer will be required to report their prospective in-scope members’ Division 296 relevant earnings to the ATO prior to winding up.

Click here for details

APRA – ‘APRA Explains’ article published on its approach to appropriate prudential balance

On 24 September 2026, APRA published an article detailing its strategic objective to ‘get the balance right’ by reducing unnecessary regulatory burden while maintaining strong prudential standards that support productivity and long-term financial stability.

The article highlights APRA’s view that getting the balance right does not mean reducing standards, but rather delivering prudential objectives in the most efficient way possible.

APRA’s current initiatives underway that which will impact super trustees include:

• reducing the burden under the Financial Accountability Regime;
• simplifying APRA’s policy package; and
• carrying out its activities in accordance with its 2026-27 Corporate Plan, noted in our previous Super Alert on 21 August 2026.

Click here and here for details.

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