Fri, 23rd May 2025

In this week's Superannuation News Wrap, Paige Estritori discusses key developments impacting Australian superannuation. The first is the Australian Government's cap on superannuation tax concessions, set at three million dollars. This, in conjunction with a new tax on unrealised capital gains, is shifting investor behaviour towards Exchange Traded Funds (ETFs). However, it could potentially have negative impacts on smaller investors by increasing costs, resulting in broader effects on other asset classes. As a response, many self-managed superannuation fund trustees are focusing their investments on ETFs. The second topic covers the controversy surrounding the Australian Labor Party's legislation targeting unrealised gains over the three million dollar mark. Despite criticism, progress is expected following their electoral victory. With discussions focused on potential refinements, the superannuation sector encourages diplomatic engagement with Senate crossbenchers and the Greens to amend the bill.n