The SMSF Association believes the Division 296 tax bill is unlikely to become a reality before next year’s election, but the government is continuing to act as if it is an active policy despite the resistance it faces in the Senate.
Association chief executive Peter Burgess said the progress of the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023, which is currently before the upper house awaiting further debate, had shifted from being delayed to stopped in a single day.
In a post on the industry body’s website, Burgess confirmed the government had lost the opportunity to pass the bill to introduce the measure in 2024 and suggested it become law during the seven Senate sitting days in February next year that are likely to be the last before an election is anticipated to be called.
As such, he believed the bill was dead in the water, but noted the government was still going to maintain it was viable as it was a revenue measure.
“In my view, and I stress this is my take on recent parliamentary conversations, as I suspect only Treasurer Jim Chalmers and his office really know, this bill is now nothing more than a ‘zombie’ measure,” he said.
“That is, while the government may have no real intention of passing this measure, they maintain the facade of commitment to preserve the projected revenue on their books and sustain the illusion that it remains an active policy.”
He added there had been clues the government was aware the bill was unlikely to be passed as it stands, such as the suggestion it could be rushed through under a guillotine motion, which curtails all debate on bills, even though there had been no consultation with crossbench senators whose votes are required to pass the bill.
“I may be wrong. Indeed, it may be just wishful thinking on my part, but the fact that this measure, which we have consistently argued is deeply flawed, has been reduced to a zombie measure is a testament to what can be achieved when we all work together,” he said.
“Should this bill be finally defeated, it will mark a significant victory for all our members and serve as undeniable recognition of our growing influence in Canberra.
“If the government intends to take this measure to the next election, the considerable backlash it has attracted makes it a formidable challenge to secure voter support without significant amendments.
“Similarly, expecting what many anticipate will be a more hostile lower house after the election to support a tax riddled with unintended consequences and inequitable outcomes would be an equally daunting task.”
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