Proposed changes to superannuation will benefit the industry super sector and act as a proxy to fund political activity by unions in support of the Labor Party, according to an SMSF expert.
LightYear Group founder and director Grant Abbott has questioned the basis for the government’s proposed additional earnings tax for superannuation funds with balances over $3 million and the shift to payday superannuation guarantee (SG) payments from 1 July 2026.
“Does everyone understand how the Labor Party gets paid? The Labor Party contributions are from where? The unions. That is where they get most of their money to campaign,” Abbott said during a presentation at the recent LightYear Docs 30 Years of Strategies event.
“Where does most of that money come from given there is only a 15 per cent unionised workforce in Australia? It comes from industry super funds and because they own some industry super funds, that is where the money is coming from.
“So expect over the next few years there is going to be changes and they are going to benefit industry super funds and are going to go against SMSFs.
“Look at the $3 million super wealth tax. Was that against industry funds or against SMSFs?
“Also consider that from mid-2026 on every payday you’re now going to have payday super. Who does that benefit? SMSFs or industry funds?
“The industry funds’ wealth will increase suddenly and quite considerably because now they will be getting a constant cash flow.
“If you look at the last two years for industry funds, their returns have been negative and when that happens, people look at their statement saying ‘hold on, I’m putting my SG contribution in there and I am going backwards’ and that creates openings for that next generation of fund members to look into moving into an SMSF.”
