Support for the bill that will introduce the Division 296 tax does not appear to be solidifying in the upper house, according to the SMSF Association (SMSFA), which has continued to meet with independent senators to present reasons for it to be scrapped or amended.
In a communication to members, the association stated it had returned to Canberra yesterday for the first sitting day of the spring session of parliament as part of an “advocacy blitz” and had met with senators David Pocock, Pauline Hansen and Tammy Tyrrell, and also with the chief of staff for opposition treasury spokesman Angus Taylor.
“The focus of these meetings was to rally support for the removal of schedules one to three from the Better Targeted Superannuation Concessions Bill, which is currently before parliament,” it stated, adding those schedules would introduce the new tax on super balances above $3 million.
“We received a very good hearing from the independents, especially on the issue of indexation and the vexed issue of taxing unrealised capital gains.
“We appreciate their willingness to engage and their desire to address these egregious aspects of the bill.
“While the outcome remains uncertain, right now what is clear is that Senate crossbench support for this measure is not guaranteed.”
The SMSFA is one of a number of industry and professional bodies calling on the government to make changes and meeting with senators regarding the bill, with its most recent visit following association chief executive Peter Burgess recently stating the likelihood of it passing was no longer assured.
Speaking at the recent SMSFA Technical Summit 2024, Burgess said: “Six months ago it looked almost certain that the bill was going to pass both houses of parliament without amendment.
“Right now, I think at best it’s a fifty-fifty proposition whether the government will be able to get that bill through both houses of parliament without amendments.”
The bill remains in the lower house where it was last debated on 16 May when a second reading was agreed to, opening the way for it to proceed to the Senate where the government, with 25 seats, will need the support of the Greens (11 seats) or minor parties and independents (9 seats collectively) to overcome the opposition (31 seats).
