The SMSF Association has applauded the absence of changes in the budget that will impact the superannuation sector and has noted the capital gains tax (CGT) changes announced may give some investments inside super a tax advantage.
SMSF Association Head of Policy and Advocacy Tracey Scotchbrook noted the strong emphasis on changes to the CGT rules, negative gearing and taxation of discretionary trusts meant no new changes to superannuation were flagged but provided some certainty and stability given the recent passage of the Division 296 tax measures and the pending Payday super reforms.
She acknowledged plans to replace the 50 per cent CGT discount with a cost base indexation for assets held for more than 12 months, and a minimum 30 per cent tax on capital gains from 1 July 2027 did not extend to superannuation funds, including SMSFs, where the one-third discount will still apply.
Further she indicated this shift could make investments via an SMSF more attractive, particularly for start-up business seeking angel investors.
“The conversations we were having with various parties in that space showed they were concerned about the proposal to tax unrealised gains [under the initial Division 296 plans], and what impact that would have on angel investing because many of them were seeing a large portion of their funding coming from SMSFs,” Scotchbrook told selfmanagedsuper.
“Tax is always one consideration and investors are going to have to model to see how these investments sit with Division 296.
“On the surface it potentially puts SMSFs back on the on the table.
“It is something individual investors are going to assess through modelling as to their own personal tax situation but it is making SMSFs look a little bit more attractive and given the other tax changes to trusts and individuals you would have to say they look a whole lot better.”
Evalesco Financial Services senior financial adviser Blake Cullen added the advantage for SMSFs came about because of the interaction of tax within a fund.
“Although the CGT settings for super will remain unchanged, investors will receive a less generous 33 per cent discount on capital gains on long held assets,” Cullen said.
“Within super, the earnings are taxed at a flat 15 per cent rather than an individual’s marginal tax rate, the discount gives an effective rate of tax at 10 per cent.
“Compared with the new proposals, in effect from 1 July 2027, the CGT will be payable at a minimum rate of 30%, possibly higher.
“With super being the last major concessionally taxed environment, it increasingly stands out as the most attractive long-term savings environment available,” he concluded.
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