Super funds welcome CGT exemption

Mike Taylor

Managing Editor and Publisher

12 May 2026

The Government appears to have played to its superannuation constituency by exempting superannuation investors from the changes to the Capital Gains Tax (CGT).

The Budget earned the plaudits of the Association of Superannuation Funds of Australia (ASFA) which welcomed the exemption of superannuation investors, including self-managed funds, from the CGT changes.

ASFA chief executive, Mary Delahunty said the current CGT settings for super were appropriate and would remain unchanged.

The Super Members Council (SMC) was similarly supportive of the Government approach.

“Tonight’s budget is a win for the 19 million Australians with a super account, who value stability in super’s tax settings,” Delahunty said.

For its part, the SMC said it welcomed the Budget funding to strengthen consumer safety in super following the First Guardian Sheild collapses.

“Super offers every Australian a deal: if you set aside money for your retirement and reduce your future reliance on the age pension, you are rewarded by paying less tax. Australians rightly expect those tax concessions to remain stable, and that’s what this budget has delivered,” Ms Delahunty said.

Outside of super, investors currently receive a 50 per cent discount on CGT for assets held for longer than 12 months. From 1 July 2027, the CGT payable in this context will be the higher of: (1) a rate of 30 per cent or (2) the investor’s marginal tax rate minus an inflation-indexed discount.

Inside super, investors receive a less generous 33 per cent discount on capital gains on long-held assets, which will remain. Earnings in super are taxed at a flat 15 per cent rather than an individual’s marginal tax rate. The 33 per cent discount gives an effective tax rate of 10 per cent.

“Super’s $4.5 trillion savings pool is a primary driver of investment in Australian businesses. Stable tax settings keep super an attractive home for long-term capital that funds the productive assets that grow our economy and create jobs.

“Tonight’s budget is good news for people with super and good news for the nation,” Ms Delahunty said.