Superannuation - An Update

There have been a few developments in this area recently, and below is a summary of some of the key points.

Additional Tax on Superannuation Balances Exceeding $3 Million (Division 296 tax)

The final sitting of parliament prior to this year’s federal election has ended, and this legislation remains stuck in the Senate because the government could not garner support from the cross benchers. Therefore, nothing will happen with this proposal until after the election.

Increase in Superannuation Transfer Balance Cap (tax free amount on superannuation balance)

After adjusting for CPI, the maximum tax free amount that you can have in superannuation for the 2025 – 2026 year will increase from $1.9 million to $2.0 million.

There has not been any announcements yet on changes to the superannuation contribution caps. At present, the concessional (tax deductible) contribution limit is $30,000 p.a., and the non-concessional (non-tax deductible) contribution limit is $120,000 p.a.

SMSFs Investing in Properties

If you have a self managed superannuation fund (SMSF) that invests in properties, be they commercial or residential, the ATO requires that these properties be revalued each year.

While the ATO prefers the revaluation to be conducted by a registered valuer, this is not an actual requirement. Revaluations can be completed by someone who does not have formal valuation qualifications, but who has specific knowledge or experience in that particular area, and the revaluation is objective and is supported by verifiable data (e.g. a local real estate agent).

Reach out to us if you have any questions with the above update.