CHANGES TO $3M SUPER TAX WELCOMED BY PEAK ACCOUNTING BODY

Chartered Accountants ANZ

Chartered Accountants Australia and New Zealand (CA ANZ) supports the government’s decision to amend its Better Targeted Superannuation Concessions policy to ensure fairness through indexation and only taxing realised gains.

CA ANZ has consistently advocated for these changes to be made because the original policy settings were unfair and would have been complex to administer.

“We support these changes and thank the government for listening to the concerns of the accounting profession,” said Ainslie van Onselen, CA ANZ CEO.

“By taking on feedback from a range of experts and stakeholders, the government will now avoid the unfairness and implementation costs of taxing unrealised capital gains in superannuation given the wide fluctuations in the market value of assets that often occur.

“We also welcome the government’s decision to index the $3 million threshold as this ensures the policy will not automatically impact younger Australians over time. Indexation will reduce the potential for bracket creep that was a feature of the government’s original policy settings for this tax.”

CA ANZ Group Executive Advocacy, Public and Government Affairs Damian Ogden said the revised start date is also a positive development.

“Pushing the commencement of this policy back to 1 July 2026 will give the government and those impacted by this policy an opportunity to work together to get the detail and policy settings right,” said Damian Ogden.

“We encourage the government to get this policy through parliament as soon as possible to give our members the certainty they need on how and when it will apply to their clients.”

“All the changes announced by the government today, including the increase in the Low Income Superannuation Tax Offset, demonstrate that the government needs to comprehensively review all current superannuation and retirement related tax and transfer payments policies as we recommended to the recent Economic Reform Roundtable.

“As we have said since this superannuation policy was first announced, there will be implementation challenges, but we’ll work with the government to support where we can.”

ENDS  

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