Ugly, complex layering of tax – SMSF Association

Mike Taylor

Managing Editor/Publisher, Financial Newswire

12 March 2026

The Government has managed to navigate its latest superannuation legislation through the Parliament but the SMSF Association has warned that it is an “ugly tax” which will layer significant complexity.

Reacting to the passage of the Building a Stronger and Fairer Super System legislation, SMSF Association chief executive, Peter Burgess said his organisation remains concerned about the unintended consequences, complexity and long-term effectiveness of the new tax regime.

He said significant industry effort and costs will now be required to implement and explain a tax that may ultimately have only a limited and diminishing revenue base.

“The legislation introduces what can only be described as an “ugly tax”, layering significant complexity across the superannuation system while raising questions about whether the long-term revenue generated will justify the substantial cost of implementation,” Burgess said.

“Ultimately the cost of this tax will be borne by all superannuation fund members, not just those directly affected.

“Over time, the pool of wealthier super members affected by this tax will shrink as benefits are compulsorily paid out.  Under the existing contribution rules those amounts cannot simply return to the superannuation system, meaning the number of individuals captured by this tax will naturally decline over time,” he said.

“In the meantime, the superannuation industry is expected to prepare for implementation even though the regulations that will determine how the regime will actually operate still have not been released.

“These compressed timelines will inevitably increase implementation costs and may leave many affected individuals with little time to understand the changes, increasing the risk of misinformation, non-compliance and unexpected tax outcomes,” Burgess said.