The SMSF Association has revealed Treasurer Jim Chalmers is not open to considering any alternative methods to make the calculation of the revised Division 296 tax simpler and more cost-effective.
SMSF Association chief executive Peter Burgess confirmed this stance was made clear to both him and industry body chair Scott Hay-Bartlem in their most recent meeting involving Chalmers, Assistant Treasurer Daniel Mulino and their policy advisers in Canberra.
“We discussed a range of topics and thanked the Treasurer for the recently announced changes to the proposed legislation,” Burgess told members during an update on the organisation’s advocacy activities.
“We pointed out to the Treasurer the use of realised earnings [to calculate the tax liability under the measure] came with its own set of challenges and issues and if not designed carefully [could result in] unintended consequences.
“We raised our concerns about the complexities and costs, which will be ultimately born by all superannuation fund members.
“Unfortunately, the Treasurer is not prepared to consider simpler, more cost-effective alternatives.”
According to Burgess, the Treasurer responded by stating the government is conducting targeted consultation on the changes made to the proposed Division 296 tax legislation through a technical working group that the SMSF Association has been invited to attend.
“I confirmed our participation in these working groups and our commitment to working through the issues with Treasury. The Treasurer thanked the association for our ongoing contributions to the design of this tax,” he noted.
Further, he indicated Canberra had set a proposed timeframe as to when the first draft of the new Division 296 tax legislation will be released to allow the consultation process to commence.
“During earlier discussions with Treasury I was advised draft legislation for the revised Division 296 approach is expected to be released before Christmas,” he said.
The Albanese government announced it had decided to make changes to the original Division 296 tax legislation in October.
