“There is a need to be on some level of segmentation within the client base to separate those clients that have total superannuation balances above the $1 million,” explained Mr Dunn.

“For those clients, practitioners may need to be more strategy-focused in terms of how those benefits may be taken out if they’re contemplating partial commutations and so forth, versus those under the $1 million.”

SMSF practitioners, he said, should also be looking at clients that are just under the threshold because they may slide in and out of the events-based reporting system.

“Practitioners will still need to be active in the management of those, even though you only need to do that annually where the total super balance is under $1 million,” he said.

“You then have your lower-risk clients in the third category which are, in theory, never going to reach the $1 million so you don’t have any particular issues there.”