The controversial Division 296 tax has officially lapsed following the election announcement this morning. According to Peter Burgess, chief executive of the SMSF Association, the lapse occurred because the Better Targeted Superannuation Bill failed to pass the Senate before the election was called.

“Given the bill has not been passed, it means we do not need to rely on a Coalition government to repeal this legislation if they win the election,” Burgess said.

He also noted that if the Albanese government is re-elected, it will need to restart the legislative process, potentially facing a more hostile lower house. “So, we may well have dodged a bullet,” Burgess added.

However, Burgess cautioned that since the government has retained the full budgeted revenue from this measure, it will likely need to present the idea of taxing unrealised capital gains to the electorate. This move is expected to be contentious, as there are growing concerns about the precedent it may set amid a widening budget deficit.

Early this morning, Prime Minister Anthony Albanese requested permission from the Governor-General to dissolve parliament, marking the end of the 47th parliament. The election is scheduled for 3 May.

Rick Maggi CFP, Financial Advisor Perth, Westmount Financial