SMSF Association urges Government to rethink Div 296 Tax
The SMSF Association remains hopeful that proposed legislation introducing a 30% tax on superannuation balances above $3 million (Division 296) may still be amended, citing concerns over its fairness and practicality.
Speaking on the SMSF Adviser podcast, SMSF Association CEO Peter Burgess expressed optimism that the government might reconsider elements of the proposed legislation now that the federal election has passed.
“The implications of taxing unrealised capital gains have been widely criticised, including by influential business leaders,” Burgess said.
Burgess also flagged the start date of 1 July 2025 as a key concern.
Given the delayed passage of the bill, it would be unreasonable to expect trustees to implement changes in less time than originally intended, Burgess said.
“If this legislation is reintroduced, we would expect to see a revised start date,” he said, noting that even larger APRA-regulated funds are still adjusting systems to comply, despite the law not yet being finalised.
He further warned that taxing unrealised gains would undermine ethical investing and venture capital funding – areas of growing interest among SMSF members aged under 45.
“This isn’t about wealthy individuals dodging tax. This is about supporting the fastest-growing segment of the super sector and aligning with ESG values.”
Burgess said the Association will engage with the Greens and other crossbenchers to highlight the sector’s importance to progressive policy goals.
At Omnis our SMSF team is highly skilled at navigating the complexities of SMSF regulations to help our clients achieve financial security and compliance. Contact us in West Perth on 08 9380 3555.
