A written investment strategy is already a legal requirement for every SMSF. So why are 2026 reforms putting it back in the spotlight? The Federal Government has proposed requiring SMSFs to have a written strategy upfront and is consulting on ways to improve their quality. For trustees, this does not necessarily mean a major rewrite. It does mean your SMSF investment strategy needs to do more than sit in a file for the annual audit. It should explain what your fund is trying to achieve, reflect your circumstances, and support the investment decisions you actually make.
Why your SMSF investment strategy matters more in 2026
The proposed reforms follow concerns about investor protection and governance across the superannuation system. While the announcement is aimed at strengthening confidence in super, the message for SMSF trustees is fairly practical: investment decisions need proper thought and documentation.
Trustees already have a legal obligation to formulate, regularly review and give effect to an investment strategy. The strategy must consider the fund as a whole, including risk and return, diversification, liquidity, liabilities and insurance where relevant. These requirements are not new, but the proposed reforms could increase attention on whether strategies genuinely reflect the fund.
A common problem is a strategy that looks polished but says very little about the actual SMSF. For example, an allocation range allowing an asset class to sit anywhere between zero and 100 percent gives little insight into the trustees’ intended approach. Similarly, saying diversification has been considered does not explain why a fund deliberately holds most of its assets in one property.
How SMSF investment strategy reforms could affect trustees
The Government has not yet released the final requirements, so trustees should avoid making changes based on assumptions. The proposed upfront written strategy is the clearest announced direction. The bigger question is what “improving quality and integrity” will eventually require.
For many SMSFs, the practical answer may be better documentation rather than different investments. Your strategy should connect your investment choices with your members’ objectives, risk tolerance, retirement stage and expected cash needs. If your fund is paying pensions, liquidity deserves particular attention because regular payments and expenses still need to be met even when markets fall.
Consider a two member SMSF where one member is retired and the other is still working. Their investment needs may not be identical. A strategy that simply repeats standard wording may miss the difference in their time horizons, income requirements and capacity to tolerate investment losses. A useful strategy should capture those circumstances rather than pretending every SMSF looks the same.
At Oakridge, we see value in treating the investment strategy as a working document. Our SMSF specialists can help trustees understand the compliance requirements, compare the documented strategy with the fund’s actual position, and identify areas that may need attention. Where personal investment recommendations are required, an appropriately licensed financial adviser may also need to be involved.
What should SMSF trustees review now?
There is no need to panic or immediately replace your existing strategy because of the 2026 announcement. Instead, use the proposed reforms as a reason to test whether your current document still tells the real story of your fund.
Start by checking when the strategy was last reviewed. Then compare it with your current investments, member ages, pension arrangements, expected contributions, major liabilities and likely cash requirements. If your fund has a concentrated investment, document the reasoning behind that decision. If your asset allocation has moved outside the stated ranges, record why and consider whether the strategy itself should be updated.
Also check whether insurance considerations have been addressed where relevant and whether the strategy reflects major changes such as retirement, a member’s death, a property purchase or sale, or a significant change in investment risk. These events can change what makes sense for the fund.
For trustees, that means asking practical questions: what risks can the fund accept, how much cash might it need, and what happens if circumstances change unexpectedly? Those answers should be visible in the strategy.
The proposed reforms are still being developed, so the detail may change. However, trustees do not need to wait for legislation to improve their governance. A clear, current SMSF investment strategy can help you make more deliberate decisions today and place your fund in a stronger position for future requirements.
A good SMSF investment strategy should never be paperwork created simply to satisfy an auditor. It should explain why your fund is invested the way it is and whether that approach still fits your circumstances.
With more than 20 years supporting Australian businesses and SMSF clients, our Ballarat based CPA team can help you review the compliance side of your strategy and prepare for changes ahead. A sensible review now can save considerable confusion later.