New Legislation Affecting Financial Advisers in 2026
Reviewed August 2026 — legislative status and cap figures current as at publication.
Key takeaways:
- 2026 brings significant legislative changes including DBFO Tranche 2 developments, life insurance commission caps, and superannuation reforms
- The LRBA ban (July 2024) continues to reshape SMSF advice and property investment strategies
- Superannuation caps are indexed annually — for 2026-27, the concessional cap rises to $32,500 and non-concessional to $130,000
- Your adviser should keep you informed of legislative changes that affect your financial strategy
A roundup of regulatory changes that advice practices need to be aware of
DBFO Act Implementation
The Delivering Better Financial Outcomes Act continues to be implemented with ongoing updates to ASIC regulatory guides and guidance. Advisers should be aware of changes to FSG requirements, Client Advice Record obligations, and fee disclosure rules as these reforms take effect.
Superannuation Guarantee Increases
The superannuation guarantee rate is scheduled to rise. This affects employer obligations, contribution planning, and client advice strategies. Advisers should model the impact of SG increases on client retirement projections.
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ASIC Regulatory Guide Updates
ASIC continues to update regulatory guides in response to legislative changes and enforcement experience. Recent updates to RG 175, RG 104, and INFO 291 affect how SOAs are structured and what content they must include.
Compliance Implications
Staying current with legislative changes is essential for maintaining compliant advice practices. AdviserCheck updates its analysis prompts to reflect regulatory changes ensuring that compliance checks remain current with the latest requirements.
Key Regulatory Changes in 2026
The financial advice regulatory landscape in 2026 is shaped by several significant changes. The DBFO Tranche 2 reforms continue to progress through Parliament, potentially removing the safe harbour steps and simplifying SOA requirements. From 10 July 2025, life insurance commission caps took effect (60% first year, 20% ongoing) with mandatory client consent requirements.
In superannuation, the annual caps are indexed from 1 July 2026: the concessional (before-tax) contributions cap increases from $30,000 to $32,500, and the non-concessional (after-tax) cap increases from $120,000 to $130,000 (with the bring-forward cap rising to $390,000 over three years). The Super Guarantee remains at 12%, and the total super balance cap for making non-concessional contributions is indexed to $1.9 million.
How These Changes Affect Your Advice
If your financial plan was prepared before these legislative changes, it may need updating. For example, if you were contributing up to the concessional cap of $30,000, you can now contribute up to $32,500 from July 2026 — an additional $2,500 in tax-effective contributions per year. If you are receiving life insurance advice, the new commission caps and consent requirements may affect how your adviser structures insurance recommendations.
Your Statement of Advice should reference the current legislative environment and explain how any relevant changes affect the recommendations. If your advice relies on assumptions about super caps or tax rates that have changed since the document was prepared, request a review. A good adviser will proactively update you on changes that affect your financial plan.
Staying Informed About Legislative Changes
You can stay informed about legislative changes affecting financial advice through several channels: the ATO website for super and tax changes, the ASIC website for regulatory updates and enforcement priorities, the Treasury website for proposed reforms and consultation papers, and the Moneysmart website for consumer-focused summaries of changes.
Your adviser should also keep you informed. If you have an ongoing advice arrangement, your annual review should include a discussion of legislative changes that affect your strategy. If you do not have ongoing advice, consider booking a one-off review when significant changes occur, such as the annual indexation of super caps or changes to Centrelink rules.
Frequently Asked Questions
What are the new super contribution caps for 2026-27?
From 1 July 2026, the concessional contributions cap rises to $32,500 (from $30,000), and the non-concessional cap rises to $130,000 (from $120,000). The bring-forward cap for non-concessional contributions (over three years) rises to $390,000.
How do the life insurance commission caps affect me?
From 10 July 2025, life insurance commissions are capped at 60% of the first year premium and 20% of ongoing premiums. Your adviser must obtain your written consent before receiving any commission, and the consent must be renewed annually. This means you will see clearer disclosure of insurance costs in your advice documents.
Are there any changes to Centrelink rules in 2026?
Centrelink thresholds and deeming rates are reviewed regularly. As of 2025-26, the deeming rates are 0.25% (lower) and 2.25% (higher), with thresholds of $60,400 for singles and $100,200 for couples. These rates are reviewed in line with economic conditions.
Will the DBFO Tranche 2 changes affect my existing SOA?
If enacted, Tranche 2 would apply to new advice provided after the changes take effect. Your existing SOA would not need to be replaced, but any future advice or reviews would need to comply with the new requirements.
What Has ASIC Been Penalising Advisers For?
The 2024-25 enforcement tally answers a lot of questions at once: 19 criminal convictions, 38 newly launched civil proceedings, $104.1 million in court-ordered penalties, and 58 individuals or companies restricted or banned from financial services. Investigations climbed about 50% on the previous year.
What kinds of conduct drew the heaviest sanctions?
- Recommending risky products. Four MWL Financial Services advisers were banned for 4–8 years in 2025 over Shield Master Fund recommendations made without regard to clients' best interests; the fund itself was placed in receivership and wound up in 2024-25 following concerns about inappropriate advice and inadequate disclosure.
- Mishandling client money. Glenda Rogan received a 10-year ban in 2025 after transferring $14.8 million of client funds into a cryptocurrency-based scheme.
- Dishonesty. Barry King's permanent 2025 ban covered dishonest conduct, misuse of client funds and false documents.
- Fees without service. Multiple licensees and advisers were pursued in 2024-25, including Crown Wealth Group director Andrew Moore, banned over unreported fees-for-no-service conduct.
- Operating unregistered. ASIC hit licensees including Skye Money and Smart Financial Capital with $31,300 infringement notices in 2025 for allowing advice while unregistered.
The regulator has separately cautioned consumers about schemes that target superannuation with high-pressure sales tactics and unrealistic return claims.
Drawn from the ASIC Annual Report 2025 and ASIC's August 2025 Financial Advice Update.
Major Reforms That Shaped Today’s Rules
From FOFA to DBFO, each milestone below altered consumer protections in practical ways. Scan it to place your own advice document in context.
| Date | Reform | Impact on Consumers |
|---|---|---|
| July 2012 | FOFA enacted | Best interests duty (s961B), ban on conflicted remuneration, opt-in for ongoing fees |
| July 2013 | FOFA mandatory | Full compliance required — advisers must act in your best interests |
| July 2016 | Accountants' exemption repealed | Accountants need AFSL to give SMSF advice, increasing consumer protection |
| 2018-2023 | Royal Commission + response | FEAR Act (2019) — higher penalties, breach reporting, enforceable director duties |
| Dec 2022 | QAR Final Report | 22 recommendations including simplified SOAs, new adviser class, streamlined best interests duty |
| July 2024 | DBFO Tranche 1 | FSG website disclosure option, conflicted remuneration clarification |
| Jan 2025 | DBFO changes commence | Fee Disclosure Statements removed, streamlined ongoing fee consents, legal clarity for super advice fee deductions |
| Mar 2025 | DBFO Tranche 2 draft | SOA rationalisation, collective charging for super, super fund targeted prompts. Best interests duty modernisation and new adviser class still in development. |
Sourced from ASIC, Treasury DBFO documentation, FAAA and APESB publications.
Checking Documents Against the New Rules
This page explains the rule; AdviserCheck applies it. Our engine encodes FOFA obligations, the s961B best interests duty, RG 175 content standards and DBFO requirements into structured checks, then runs three independent AI models over your document. What reaches you is a short list of gaps that matter, each tied back to the obligation behind it. Put the rules to work on your own document — the first check is free.
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Try AdviserCheck FreeLast updated: 2026-09-12. This guide is for informational purposes only and does not constitute legal advice.