Millions of Australians could be caught in a surprise superannuation tax trap despite Treasury assuring voters retirement savings would be exempt from Labor’s controversial capital gains tax overhaul.
Anthony Albanese‘s government has been accused of burying a new tax on super after analysis by the Financial Services Council discovered $372billion in retirement savings could face an additional $55million a year tax bill if their money is held through managed investment trusts.
The finding appears to contradict a Budget explainer released by Treasury in May, which promised superannuation, including self-managed super funds, would be shielded from the government’s capital gains tax changes.
Shadow treasurer Tim Wilson seized on the analysis, accusing Labor of laying ‘yet another tax landmine’ in its Budget.
‘The Albanese Government has been caught laying yet another tax landmine in its Budget to feed its spending addiction, and this time it’s targeting superannuation,’ he said.
The Financial Services Council, which represents retail superannuation funds, said assets worth billions held within superannuation structures could be affected by the change.
Under current tax rules, super funds can use capital losses in a way that preserves as much of their valuable capital gains tax discount as possible, helping to minimise tax and maximise returns for members.
Under Labor’s proposed changes, that treatment would continue for assets held directly by a super fund.
But if the same assets are held through a managed investment trust, different loss-ordering rules would apply before gains flow back to the fund, reducing the available tax discount and potentially increasing the tax paid on members’ retirement savings.
Anthony Albanese’s (pictured) government has been accused of burying a new tax on super
