Super Alert – 20 February 2026: ATO information re transfer balance cap, ASIC review into financial advice licensees engagement in lead generation

Welcome to the weekly KHQ Super Alert. This week Treasury released a consultation paper, seeking feedback on the design elements of a sustainable financial product labelling framework. The ATO updated its information about the transfer balance cap which will apply from July 2026. Meanwhile, ASIC announced the commencement of a review into financial advice licensees who engage in lead generation practices.

ASIC – Review into use of lead generation services commenced

On 18 February 2026, ASIC announced that it has commenced a review of advice licensees that use ‘lead generation services’ as part of the regulator’s ‘ongoing program of work to address practices that inappropriately or unnecessarily encourage consumers to switch their superannuation’.

ASIC states it is concerned that the use of lead generation practices amongst financial advice licensees is exposing consumers to a risk of significant loss as a result of switching their super. ASIC’s review will identify those financial advice businesses that utilise lead generation services in an effort to ‘understand the nature of these arrangements and where appropriate, take disruptive or enforcement action’.

ASIC has published a list of known entities that use or are involved with lead generation services on its Moneysmart website, in order to improve consumer transparency. ASIC has recommended that superannuation trustees review the list and compare it with their own internal data for indications of high-risk superannuation switching conduct.

Click here and here for details.

ATO – Transfer balance cap updated

On 17 February 2026, the ATO updated its website information relating to the transfer balance cap. The ATO’s updates confirm that the general transfer balance cap will increase to $2.1 million from 1 July 2026 as a result of indexation.

Click here and here for details.

ATO – Practical guidance for dealing with defined benefits reporting and receiving member rollover requests updated

On 16 February 2026, the ATO updated its website information for the following topics (although it is unclear what the specific updates are):

• ‘Defined benefits for super fund transfers – How to re-report and transfer information for notional tax contributions and Div 293 deferred debts for members’; and
• ‘Receiving member rollover requests – How members of your fund can request a rollover to another APRA fund or an SMSF’.

Click here and here for details.

Treasury – Consultation on framework for sustainable financial product labelling released

On 13 February 2026, Treasury released a consultation paper seeking feedback on ‘a proposed system to label sustainable financial products’. In an associated media release, the Hon Dr Daniel Mulino MP Assistant Treasurer, Minister for Financial Services explained that the ‘objective of sustainable investment product labelling is to help investors understand the sustainability credentials of their investments and provide product issuers with more certainty when marketing a product as sustainable’.

The consultation paper is intended to be a starting point for designing a sustainable financial product labelling regime and specifically considers:

• defining the scope of sustainable investment product labelling;
• the introduction of mandatory consumer-facing disclosures;
• the introduction of thresholds for a labelling regime; and
• requirements forming the basis of evidentiary assessments.

The consultation period closes on 13 March 2026.

Click here and here for details.

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