With the 2025 Federal Election having run its course and the Labor party being voted back in for a second term, we can now look at what this means for you and your SMSF.
What policy promises were made and what is now off the table?
Labor promises and policies
Increase tax on members with $3 million-plus in super
The Labor party was noticeably clear on their intent to push ahead with the doubling of the tax rate on super fund earnings if they were returned to power.
These Division 296 tax measures effectively double the tax rate on super fund earnings from 15% to 30% for members with total super balances that exceed $3 million.
The original proposed commencement date for Division 296 was 1 July 2025.
With the Labor party now having over 90 seats in the House of Representatives and holding the balance of power in the Senate, they are well-placed to have new legislation passed relatively quickly. Now we just need to wait to see what the Labor party’s final policy will look like and what support they receive from the Greens and the cross benches to have this pass through the Senate.
Payday super contributions
Under current laws, employers must pay eligible employee super contributions to their employees’ super fund of choice on a quarterly basis.
This can result in:
- Lost super fund earnings for the period these contributions remain unpaid
- Lack of clarity on retirement savings for employees.
In its previous term of government, the Labor party had already introduced Payday Super legislation requiring employers to make superannuation payments at the same time as they pay salary and wages to eligible employees.
This is scheduled to begin on 1 July 2026.
With their return to power, the Labor party should be able to push the proposed legislation through both houses of Parliament.
Coalition policy promises lost
Early access to super for home purchase
The coalition proposed allowing first homeowners early access to their super to buy a home. Under this proposal, first homeowners could access up to $50,000 (capped at 40% of their member balance) from their super fund to help with the purchase.
They would then have been required to return any amount accessed under this proposal on the eventual sale of the home.
With a Labor win, this is no longer going ahead.
Industry measures
Prior to the election, there were other issues the Coalition publicly supported, many of which would have impacted members of SMSFs.
Some of these included:
- Allowing accountants to provide expanded and more effective advice to clients regarding SMSFs
- Supporting greater levels of choice and control over super benefits.
It may be that the Labor government revisits some of these general industry measures over time.
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