Self-managed super sector blindsided by Labor-Greens tax deal in Australia

The tax package, announced Tuesday by Treasurer Jim Chalmers and Greens spokesperson Nick McKim, imposes significant restrictions on self-managed superannuation funds used by about 1.1 million Australians. If the package passes the Senate, funds will no longer be able to take out loans to purchase investment housing.

SMSF Association chief executive Peter Burgess said in a statement, « this reform has blindsided the sector and is penalising honest investors; Labor should be targeting unscrupulous property marketers instead. » The Australian Tax Office said about 18,000 suspect SMSF housing investments had been examined over the past three years. The association said it had proposed a stricter audit model as an alternative.

The rule will take effect on 1 July 2027, with existing loan arrangements unwound over five years. Shares of CBA, Westpac and NAB fell on the Sydney exchange: CBA dropped 1.8% and Westpac 1.4%. Opposition leader Sussan Ley called the package « an attack on retirement savings » and announced the opposition would move to disallow it in the Senate.