Common sense prevails in Division 296 tax reforms

The Institute of Financial Professionals Australia (IFPA) has applauded the Federal Government’s decision to make key amendments to its controversial Division 296 tax proposal, a measure set to tax earnings on superannuation balances above $3 million. Under the revised approach…

The Institute of Financial Professionals Australia (IFPA) has applauded the Federal Government’s decision to make key amendments to its controversial Division 296 tax proposal, a measure set to tax earnings on superannuation balances above $3 million.

Under the revised approach, the government will abandon plans to tax unrealised capital gains and introduce indexation for the Division 296 tax threshold – two changes that IFPA has been strongly advocating for since day one.

“This is a win for common sense,” said Natasha Panagis, IFPA Head of Technical Services. “The idea of taxing unrealised gains was unfair, complex, and inconsistent with basic tax principles. The government’s decision brings much-needed fairness and integrity back to the super system.”

Read our media release here.