Superannuation peak body ASFA welcomes the government’s decision to exempt super investors, including SMSFs, from changes to the capital gains tax (CGT) discount. The current CGT settings for super are appropriate and will remain unchanged.
“Tonight’s budget is a win for the 19 million Australians with a super account, who value stability in super’s tax settings,” said ASFA CEO Mary Delahunty.
“Super offers every Australian a deal: if you set aside money for your retirement and reduce your future reliance on the age pension, you are rewarded by paying less tax. Australians rightly expect those tax concessions to remain stable, and that’s what this budget has delivered,” Ms Delahunty said.
Outside of super, investors currently receive a 50 per cent discount on CGT for assets held for longer than 12 months. From 1 July 2027, the CGT payable in this context will be the higher of: (1) a rate of 30 per cent or (2) the investor’s marginal tax rate minus an inflation-indexed discount.
Inside super, investors receive a less generous 33 per cent discount on capital gains on long-held assets, which will remain. Earnings in super are taxed at a flat 15 per cent rather than an individual’s marginal tax rate. The 33 per cent discount gives an effective tax rate of 10 per cent.
“Super’s $4.5 trillion savings pool is a primary driver of investment in Australian businesses. Stable tax settings keep super an attractive home for long-term capital that funds the productive assets that grow our economy and create jobs.
“Tonight’s budget is good news for people with super and good news for the nation,” Ms Delahunty said.
For further information, please contact:
Scott Roberts, ASFA Media Lead
mediaunit@superannuation.asn.au
About ASFA
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry, and the only industry body that represents all parts of the APRA-regulated system.
Our more than 100 members include retail, industry, corporate and public sector funds and their service providers. For over sixty years, ASFA has been the voice of super, advocating for a dignified retirement for all Australians. Through research, advocacy and collaboration, ASFA promotes efficiency, sustainability and trust in Australia’s world-class retirement income system.