SMSF Association calls for urgent action on 'flawed super tax'
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The news: The SMSF Association has urged the Albanese government to address flaws in its proposed superannuation tax, which will include unrealised capital gains in its calculation of investment earnings from high-value super accounts.
The association warns the tax threatens to destabilise the $1 trillion self-managed super fund sector and is already causing panic selling.
The numbers: The proposed tax would result in an average additional tax of $50,000 for affected superannuants, based on 2023 financial year estimates, the association said. Around 17,000 SMSFs own business premises worth approximately $100 billion in business premises and farmland. Private and unlisted equities comprise 14% of SMSF assets, valued at a total of about $150 billion.
The context: The SMSF Association argues the tax will particularly impact business owners and primary producers who hold business premises in their funds. The association cites the Productivity Commission's 2018 inquiry report which emphasised the need for greater competition in the superannuation sector, claiming the new tax undermines that goal by favouring large superannuation funds over SMSFs.
As Capital Brief has reported, Australia's top VCs have labelled the proposal 'bad policy' and some angel investors say they have paused investing in startups while the policy is on the table.
What they said: "No one disputes Treasury's desire for a fair and equitable superannuation system, but to claim this tax only affects a minority and serves the national interest is shortsighted. It ignores the broader ripple effects," said Peter Burgess, SMSF Association chief executive officer.
"Business owners and primary producers have long held their business premises or farmland in SMSFs—around $100 billion worth. It's been a cornerstone for employment, investment, and innovation."
The source: SMSF Association media release.
