The government’s plan to exclude all forms of superannuation, including SMSFs, from changes to the capital gains tax (CGT) announced in federal budget has been welcomed by the Association of Superannuation Funds of Australia (ASFA).
ASFA chief executive Mary Delahunty indicated the “budget is a win for the 19 million Australians with a super account, who value stability in super’s tax settings” referring to the exclusion of super funds from the measure to replace the 50 per cent CGT discount with cost base indexation and a 30 per cent minimum tax on capital gains that will commence from 1 July 2027.
“Super offers every Australian a deal: if you set aside money for your retirement and reduce your future reliance on the age pension, you are rewarded by paying less tax. Australians rightly expect those tax concessions to remain stable, and that’s what this budget has delivered,” Delahunty added.
ASFA noted the shift still made superannuation a better tax vehicle to handle CGT.
“From 1 July 2027, the CGT payable in this context [outside of superannuation] will be the higher of a rate of 30 per cent or the investor’s marginal tax rate minus an inflation-indexed discount,” the association noted.
“Inside super, investors receive a less generous 33 per cent discount on capital gains on long-held assets, which will remain.
“Earnings in super are taxed at a flat 15 per cent rather than an individual’s marginal tax rate. The 33 per cent discount gives an effective tax rate of 10 per cent.”
Delahunty indicated retaining the current CGT settings for super was appropriate as it did not undermine its role as a source of capital for the local economy.
“Super’s $4.5 trillion savings pool is a primary driver of investment in Australian businesses. Stable tax settings keep super an attractive home for long-term capital that funds the productive assets that grow our economy and create jobs,” she explained.
“Tonight’s budget is good news for people with super and good news for the nation.”
The SMSF implications of the 2026 federal budget will be addressed at the SMSF Professional Day 2026. Click here to register for the event.
Jason Spits
SENIOR JOURNALIST
Jason is a senior journalist with Benchmark Media and writes for the selfmanagedsuper website and magazine and smstrusteenews website. He has covered financial services since 1999 and has written about life insurance, superannuation, investment management and financial advice, in both a freelance and in-house capacity, and also did a brief stint as a media manager for an industry association. He has been the editor of trade titles Money Management and Financial Standard, and was most recently senior journalist with life insurance title Riskinfo.
Articles by Jason