Treasury Laws Amendment (Building a Stronger and Fairer Super System) Bill 2026; Consideration in Detail

Opened the debate

Young moved amendments to ensure that existing superannuation balances were grandfathered, applying the new legislation only to arrangements created after commencement. Young argued that changing rules after Australians had made long-term financial decisions undermined confidence and stability in the system. The member contended that such changes could erode trust, potentially causing investors to move funds offshore, which would reduce overall tax revenue. Young characterised the bill as a revenue-raising measure rather than a fairness initiative, asserting that fairness required protecting those who planned under previous rules.

Government response

Mulino opposed the amendments, stating that exempting pre-existing interests was inconsistent with the policy intent of making the system fairer from top to bottom. The minister noted that the bill already applied only to future earnings and included capital gains tax adjustments for pre-commencement gains in APRA funds and SMSFs. Regarding the second amendment, Mulino cited advice that introducing a new condition of release before retirement raised significant constitutional issues. The minister maintained that the reforms were sensible and sustainable, better targeting tax concessions for large balances while maintaining concessional treatment for all individuals.