The three major accounting bodies have backed the changes to the Division 296 tax and have called for it to be implemented quickly.<\/p>\n
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Australia\u2019s three major accounting bodies have been unanimous in welcoming\u00a0changes to the proposed Division 296 measure, noting it will bring the impost in line with established tax policy.<\/p>\n
Chartered Accountants Australia and New Zealand (CAANZ) chief executive Ainslie van Onselen thanked the government for listening to the concerns of the accounting profession, noting the original policy settings were unfair and would have been complex to administer.<\/p>\n
\u201cBy taking on feedback from a range of experts and stakeholders, the government will now avoid the unfairness and implementation costs of taxing unrealised capital gains in superannuation given the wide fluctuations in the market value of assets that often occur,\u201d van Onselen said.<\/p>\n
\u201cWe also welcome the government\u2019s decision to index the $3 million threshold as this ensures the policy will not automatically impact younger Australians over time. Indexation will reduce the potential for bracket creep that was a feature of the government\u2019s original policy settings for this tax.\u201d<\/p>\n
CAANZ advocacy, public and government affairs group executive Damian Ogden called for the government to move quickly to implement the revised tax policy before its new start date of 1 July 2026.<\/p>\n
\u201cWe encourage the government to get this policy through parliament as soon as possible to give our members the certainty they need on how and when it will apply to their clients,\u201d Ogden said.<\/p>\n
CPA Australia superannuation lead Richard Webb said parliament should legislate the changes now the government has responded to criticism and campaigning from industry groups and stakeholders.<\/p>\n
\u201cProviding certainty and financial stability for this and future generations of retirees is critical. Taxing unrealised gains would have distorted our tax system, which needs broader reform,\u201d Webb said.<\/p>\n
\u201cThe indexing of the Division 296 proposal and taxing of realised earnings will ensure that Australia\u2019s superannuation system remains fit for purpose for future generations.<\/p>\n
\u201cBracket creep already has a silent eroding effect on personal finances. Allowing further erosion of superannuation savings would have been contrary to the fundamental principles of our tax system.\u201d<\/p>\n
Institute of Public Accountants senior tax adviser Tony Greco said the government had adopted a more equitable and sustainable approach to taxing superannuation earnings.<\/p>\n
\u201cThe decision to remove unrealised gains from the calculation of taxable earnings addresses one of the most contentious aspects in the original proposal,\u201d Greco added.<\/p>\n
\u201cTaxing unrealised gains was fundamentally inconsistent with long-standing tax principles and created significant cashflow and compliance risks for taxpayers \u2013 particularly small business owners and SMSFs.\u201d<\/p>\n
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October 14, 2025
\nJason Spits
\nsmsmagazine.com.au<\/p>\n","protected":false},"excerpt":{"rendered":"
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