SMSF Association Media Release
Addressing the contentious Division 296 legislation during his opening address at the SMSF Association’s 2025 Technical Summit, Association CEO Peter Burgess outlined the technical challenges with a back dated tax and why a deferred start date is necessary.
“Although the Government might argue this measure was announced two years ago, it is completely unreasonable to expect individuals to respond to legislation before it becomes law.”
“The Government has previously acknowledged the need for a long lead time to allow impacted members to consider the impact and make the necessary changes to their superannuation arrangements.”
“Adding weight to the need for a deferred start are the legacy pension amnesty rules that necessitate action being taken ahead of the start of Div 296 to avoid reserve allocations incurring this tax, and changes to 30 June total super balance calculations which, if backdated to 30 June 2025, could disrupt existing contribution strategies.”
Burgess said that while the Association was urging the Government to delay implementing this legislation, this did not alter its total opposition to the design of this tax – particularly the taxing of unrealised capital gains.
Joining Burgess on stage for the breakfast session at the start of day two of the Technical Summit, Wilson Asset Management’s Chair and Chief Investment Officer, Geoff Wilson AO endorsed the Association’s firm stance against the legislation.
Wilson, who has organised an online petition to galvanise opposition to Division 296, was steadfast in his opposition to the design of this tax and the wider implications it will have for retirement funding, investor confidence, and the role of superannuation in supporting the Australian economy.
During the breakfast, Wilson shared insights from Wilson Asset Management’s research, highlighting potential distortions to investor behaviour, capital flows, and the impact on SMSF liquidity.