For self-managed super funds and retirees, the headline of the 2026–27 Federal Budget is largely good news: complying super funds (including SMSFs) are explicitly excluded from the new 30 per cent minimum trust tax, residential property held in super funds is excluded from the negative gearing change, and Age Pension recipients are exempt from the new 30 per cent minimum capital gains tax.
That doesn’t mean there’s nothing to do. The new CGT regime affects personally-held assets even for SMSF members, and an earlier reform the Better Targeted Superannuation Concessions has already become law. This article maps what changed and what each change means if you’re running an SMSF or planning your retirement income.
How does the 2026–27 Federal Budget affect SMSFs?
The Budget’s big-ticket reforms negative gearing limits, the CGT discount replacement, and the 30 per cent minimum trust tax either exclude SMSFs entirely or leave the existing super tax regime in place.
Super funds, including SMSFs, already operate under their own tax framework: 15 per cent on most accumulation-phase income, 10 per cent effective on capital gains for assets held more than 12 months (via the one-third CGT discount), and 0 per cent on income supporting retirement-phase pensions (within the transfer balance cap). None of these settings have changed.
What’s relevant for SMSF trustees is what the Budget did not change — and the few related measures that touch the super system around the edges, which we cover below.
Are SMSFs caught by the new 30% trust tax?
No. The 30 per cent minimum tax on discretionary trusts is explicitly carved out for complying superannuation funds. The exclusion is stated in Budget and the Government’s Tax Reform statement.
This carve-out matters because SMSFs are technically a form of trust (the trustee holds assets for the benefit of members). Without the carve-out, the new rule could have caught fund income. The Government’s position is that the existing super tax regime already imposes a 15 per cent tax on contributions and earnings, so a separate minimum tax is unnecessary.
What do the new CGT rules mean for SMSF members?
The replacement of the 50 per cent CGT discount with cost base indexation and a 30 per cent minimum tax applies to CGT assets held by individuals, trusts and partnerships from 1 July 2027.
The SMSF itself is not directly affected — it pays tax on capital gains under the existing super CGT rules. But members hold significant assets outside super too — a family home (exempt), but also share portfolios, investment properties, and business interests. For those personally-held assets, the new CGT rules apply from 1 July 2027.
This matters for retirement planning. A common strategy has been to defer the sale of a personally-held asset until retirement, when other income is lower, to soak up the gain at a lower marginal rate. The 30 per cent minimum CGT removes that strategy except for Age Pension recipients (see next section).
How are Age Pension recipients treated under the new CGT rules?
Income support payment recipients, including Age Pension recipients, are exempt from the 30 per cent minimum tax on net capital gains. For retirees relying on the Age Pension, this preserves the ability to time asset sales when their taxable income is lower.
In planning terms, this creates a clear distinction between two retiree groups: those drawing the Age Pension (full or part) and those wholly self-funded. The Age Pension group keeps the planning flexibility that the rest of the population is losing.
Whether you qualify for the Age Pension depends on the assets test and the income test, which are separate from your tax position. The interaction between Age Pension entitlement, SMSF balance, and CGT planning is exactly the kind of question worth running through with an SMSF specialist.
Is residential property in my SMSF affected by negative gearing changes?
No. The negative gearing change applies to residential properties acquired after 7:30PM AEST on 12 May 2026 but properties held in widely held trusts and superannuation funds are excluded.
For SMSFs that hold residential property under a Limited Recourse Borrowing Arrangement (LRBA), the existing tax treatment continues. Note that an SMSF’s ability to deduct interest and other expenses against rental income within the fund is governed by the super tax rules, not the personal negative gearing rules, so the headline change doesn’t flow through.
Are there changes to the super performance test?
The Government is publicly consulting on options to strengthen the superannuation performance test, with the stated aim of removing unintended barriers to investment and ensuring the test remains fit for purpose.
The performance test currently applies to APRA-regulated funds rather than SMSFs, so this is primarily a development to watch for members of industry and retail funds. SMSF trustees still have their own oversight obligations under the ATO’s regulatory framework.
What should SMSF trustees do now?
- Separate personally-held assets from SMSF assets in your planning. The new CGT rules apply to one and not the other — your strategy should reflect that.
- Map your retirement timing against the Age Pension exemption. If your Age Pension entitlement is borderline, the planning value of qualifying just changed materially.
- Get an SMSF investment strategy review. The new tax landscape may shift the relative attractiveness of property vs shares vs cash within the fund.
- Review your estate plan. Discretionary testamentary trusts in your Will may be caught by the new 30 per cent minimum trust tax for assets transferred in after announcement.
