Not too late to stop Div 296 advisers told

Mike Taylor

Managing Editor and Publisher

19 August 2025

The Treasurer, Jim Chalmers has firmly reiterated that the Government is not for changing on the $3 million superannuation tax cap legislation, but sectors of the financial adviser community are still strongly lobbying for change.

The financial advisers are telling their peers that it is still not too late to achieve amendments to the legislation which would have the effect of stopping the taxation of unrealised capital gains.

The argument being made to advisers is that the next parliamentary sitting starts next Monday (25 August) and that, if not passed in August/early September, the Government will be facing into a $2.38 billion budget hole.

It said this “opens the door to negotiate design changes” to the legislation.

The document also argues that politicians in marginal seats are able to be persuaded in circumstances where self-managed superannuation funds (SMSF) electoral mapping reveals 29 Australian Labor Party and one Greens seat at risk.

It notes that the Greens want indexation and that advisers should “use innovation/jobs argument to sway them”

“Marginal MPs listen when their jobs are on the line,” the document said.

It also urges advisers to Youse talkback radio and letters to the editor to drive home their argument using lines such as “tax imaginary gains is unAustralian” and “This is an innovation and jobs tax”.

The document also provides a script for conversations with members of parliament such as “I’m a financial services professional representing thousands of Australians. Division 296 will damage innovation, investment, and retirement security. Taxing unrealised gains is unfair, unAustralian, and will cost jobs. Please oppose it or demand design changes”.

“Remember. If August fails, deferral = negotiation window,” it said. “Push for: Removal of unrealised gains tax, indexation of $3m threshold Dual-system for accurate taxable earnings, Fair Defined legacy pension valuations.”