The ATO has updated its guidance on education directions for SMSF trustees, focusing on situations where contraventions arise because trustees do not fully understand their obligations.  The October 2025 SMSF Newsroom update explains that an education direction requires a trustee to complete an approved course and is intended to address knowledge gaps that contributed to a breach of the Superannuation Industry (Supervision) Act or regulations.  The direction may be issued where the breach is not deliberate, fraudulent or serious in nature.

The ATO’s practice statement clarifies that education directions are not appropriate where the trustee has already received one in the past, where the trustee is an experienced professional or where the breach involved wilful disregard of the rules.  In more serious circumstances, the ATO may impose administrative penalties, issue rectification directions or accept written undertakings in place of education.  Trustees who receive an education direction must complete the course and re-sign the trustee declaration within the specified timeframe.

For advisers, this guidance highlights the importance of understanding both the nature and the context of SMSF breaches.  Trustees who are unfamiliar with the rules may receive an education direction as an opportunity to improve compliance, but trustees who repeatedly fail to meet their obligations or who engage in more serious conduct will not be afforded that leniency.  Advisers can help clients by identifying knowledge gaps early and encouraging proactive compliance.

Overall, the ATO’s approach favours education in appropriate cases, but trustees must not assume this will always be available.  The guidance stresses that knowledge, attitude and conduct will all be assessed when determining the appropriate compliance response.

Know what to expect from an education direction | Australian Taxation Office