Uncertainty is growing over the future of the proposed Division 296 tax as to whether or not the measure will be abandoned and when the bill to introduce it might be passed if the federal government does proceed with it.
Speaking during a breakfast function at the SMSF Association Technical Summit 2025 held in Sydney last week, Wilson Asset Management chair and chief investment officer Geoff Wilson said: “I’ve spoken to a few people and one of them who is very close to the Labor/Greens situation was a bit confused because Labor hasn’t engaged [with the Greens in the upper house]. So they were [wondering] why they haven’t engaged, why hasn’t there been some engagement between Labor and the Greens.
“They extrapolated [from this situation], which I think is a bit too optimistic, [that] maybe it’s dead. I don’t know if it’s a bit of a combination [between this lack of engagement and reports in the media], but there seems to be no discussion between the two [parties] and they have to discuss it [otherwise the bill] won’ get through the Senate.”
However, Wilson also suggested there had been other indications the Division 296 bill may progress more rapidly than expected.
“I had a chat with [Deputy Prime Minister Richard Marles at the rugby test] and he said they’ll sort it out at the [Economic Reform] Roundtable. To me that’s new information,” he revealed.
SMSF Association chief executive Peter Burgess said he was of the belief the government is hoping the roundtable will support the policy in terms of clawing back tax concessions for individuals with large superannuation balances.
To this point, Wilson expressed his annoyance as to how two separate aspects of the measure had become intertwined, in turn making any relevant discussion about it confusing.
“That’s my frustration that everyone gets confused [over the different issues]. An increased tax on larger [superannuation] balances is one thing and taxing unrealised [capital] gains is a totally different thing and the government has successfully meshed them together rather than have [each discussed separately],” he noted.
Earlier, Burgess said he believed the start date for the Division 296 tax measure planned for 1 July 2025 would have to be amended.
