The ALP's electoral success has cemented its resolve, underlining Treasurer Jim Chalmers' commitment to the legislation, previously known as the Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023. Although the legislative process must resume anew due to the election interrupting its progress through the Senate, the ruling party's strengthened position may aid its passage. Nonetheless, opportunities for fine-tuning remain on the table.
Diverse stakeholders in the superannuation sector have articulated their concerns through consultations with Treasury. Despite the industry's robust dissent, which was captured in 70 submissions, legislative adjustments thus far have been minimal, albeit with some concessions for Federal judges. In particular, the Self-Managed Super Fund (SMSF) Association continues to highlight perceived policy overreaches, cautioning that the threshold may eventually ensnare middle-income Australians like small business owners and farmers.
SMSF Association's chief executive, Peter Burgess, underscores potential flaws in calculating investment earnings, primarily the inclusion of unrealised gains, which could unfairly burden investors with speculative profits. As a result, the call for revising these aspects to prevent broader adverse impacts remains urgent.
In the current Senate configuration, the ALP has potential allies in the Greens to help pass the legislation. Thus, the best strategy for the financial sector may be diplomatic engagement, seeking small but significant changes to refine the bill's impact. Efforts are now aimed at lobbying for nuanced adjustments rather than outright opposition, given the political realities.
