The Association of Independent Retirees (AIR) has joined other industry bodies in applauding the changes the federal government announced this week to the proposed Division 296 tax.
“Retirees commend the government for taking on board the key criticisms of taxing unrealised gains and lack of indexation of the $3 million threshold on the proposed Division 296 legislation,” AIR chief advocate Wayne Strandquist said.
“Australian Independent Retirees objected to the calculation of earnings based on unrealised capital gains, that is, the year-on-year difference in capital value of a fund member’s total superannuation balance. We will now see earnings that are calculated on actual earnings received, such as interest, dividends, actual net realised capital gains, investment distributions and dividend franking credits.”
Strandquist pointed out the changes will now allow superannuants to meet their tax liabilities under the new measure when they have actually received the associated income.
Further, he welcomed the new implementation date of 1 July 2026, describing it as a common-sense amendment.
Wilson Asset Management also welcomed Treasurer Jim Chalmers’ change in approach to the measure with regard to the decision to abandon the proposed taxation on unrealised gains for individual superannuation accounts above $3 million.
“Common sense has prevailed. A vibrant and equitable superannuation system is central to economic and investment participation. We commend the Albanese government for recognising the need to abandon policy that we calculated would have imposed a $94.5 billion deadweight loss on the Australian economy each year, making all Australians worse off,” Wilson Asset Management chair and chief investment officer Geoff Wilson noted.
Wilson took the opportunity to acknowledge the support he received from the wealth management firm’s clients as well.
“Our advocacy campaign began in early-2023 and encapsulated multiple submissions to the Australian government and Treasury. Thank you to the tens of thousands of investors who joined the fight,” he said.
“Advocacy exists at the heart of Wilson Asset Management and we are pleased to have achieved this alongside many of our own shareholders, superannuation industry stakeholders and market participants.”
