- FSC modelling says A$372 billion of retirement assets in certain trusts could face higher effective tax.
- The industry estimates an A$55 million annual cost if Treasury’s draft CGT rules apply as written.
- Treasury’s earlier explainer said widely held trusts and super funds would be excluded, fueling the dispute.
Financial Services Council modelling says Treasury’s draft capital gains rules could expose A$372 billion of retirement assets held through certain trust structures to higher effective tax, producing an estimated A$55 million annual cost.
The assets represent about 8.4% of Australia’s total super assets, according to the industry analysis. The affected structures include a managed investment trust and an attributed managed investment trust.
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The draft does not impose a new tax on every super balance. The dispute concerns the way the proposed rules apply when retirement savings sit inside particular investment vehicles.
The modelling points to a higher effective rate on some gains. It puts the increase at 10% to 15%.
Tim Wilson, Shadow Treasurer, said the figures showed Australians could face an added A$55 million annual bill when their retirement savings use those trust structures. The Financial Services Council’s estimate equates to about 1.48 basis points of the affected pool.
Treasury had previously described the policy differently. A May Budget explainer said:
“Widely held trusts (for example, most managed investment trusts) and superannuation funds (including SMSFs) will be excluded”
That wording has become the reference point for the current dispute. The draft’s mechanics have led industry representatives to question whether the exclusion works as broadly as the earlier explanation suggested.
The draft targets the structures holding retirement savings
Treasury released its second-tranche draft and consultation materials on August 4, 2026, under Treasurer Jim Chalmers. Chalmers released additional draft legislation and explanatory memorandums on August 5, 2026.
The consultation closed on August 21, 2026. The first stage of the package became law on June 26, 2026.
The policy sits inside a wider overhaul of capital gains and negative gearing. The government announced that package in the 2026–27 Federal Budget on May 12, 2026, before progressing legislation through Parliament in late June.
The modelling does not describe the issue as a direct tax on ordinary super balances. Instead, it focuses on assets held through trust arrangements that may be affected by the new capital-gains calculations.
Two tax measures now sit on separate timelines
The draft has also been discussed alongside Division 296, but the measures apply to different policy questions and dates.
| Measure | Core proposal | Commencement or threshold |
|---|---|---|
| Division 296 | Super-balance tax | Balances above A$3 million from July 1, 2026 |
| CGT tranche 2 | Broader capital-gains and trust reform | New regime from July 1, 2027 |
| CGT discount change | Replace the 50% CGT discount with an inflation-indexed cost base model | From July 1, 2027 |
| Net capital gains rule | Introduce a 30% minimum tax on net capital gains | From July 1, 2027 |
Division 296 is the super-specific measure for balances above A$3 million. It began its separate timetable on July 1, 2026.
The draft at issue here concerns the broader capital-gains and trust reforms. Those changes are scheduled for July 1, 2027.
The tax effect depends on how an investment is held
The Financial Services Council says the exposure arises when retirement savings are invested through structures covered by the draft rules. Its estimate places the affected pool at A$372 billion and the additional annual tax at A$55 million.
The concern is therefore about the investment wrapper, not only the balance in a member’s super account. A trust structure could alter the effective treatment of a capital gain even when the underlying money is retirement savings.
That distinction separates the draft from the separate Division 296 measure. Division 296 addresses balances above A$3 million, while the CGT debate turns on how investments are held and taxed.
The broader reform would move eligible gains away from the long-standing discount model. The proposed replacement uses an inflation-indexed cost base, alongside the 30% minimum tax on net capital gains.
Industry estimates put the effective tax increase at five percentage points for an affected gain. The analysis does not say that every super investment would experience that result.
The government’s earlier language remains central to the policy argument. Treasury specifically referred to superannuation funds, including SMSFs, and widely held trusts in its explanation of the intended exclusions.
With the consultation now closed, the draft’s treatment of trust-held retirement assets will be considered as the government develops the second tranche. The proposed CGT regime is due to begin on July 1, 2027.
