Labor’s win in the 2025 Federal Election sets the stage for a wave of economic and tax reforms that could reshape the financial advice and accounting landscape.
For professionals advising clients on superannuation, trusts, wealth transfer, and investment structures, these proposals present both new risks and new planning opportunities.
Here’s what’s on the horizon — and how you can prepare.
1. Division 296: New Super Tax for High-Balance Accounts
Labor plans to implement the Division 296 tax, targeting superannuation balances over $3 million. Earnings on the portion above this threshold would be subject to an additional tax.
What this means:
Clients with high balances may need to restructure their retirement strategies. Accountants should be reviewing fund balances and modelling the impact of these changes.
2. Greater Compliance for Trusts and Family Groups
The government is also focused on increasing transparency around trusts. Proposed measures would tighten compliance and reporting obligations, particularly for family group structures.
What this means:
Trusts will likely face more rigorous reporting standards, and the ATO will be better equipped to detect misuse. Accountants should ensure trust deeds, distribution resolutions, and documentation are up to date.
3. Wealth and Business Succession Reforms
Reforms aimed at intergenerational wealth transfer and business succession are also on the agenda. While specific legislation is still to come, these policies are designed to reduce structural inequity and close tax loopholes.
What this means:
Clients with family businesses or large estates may need to revisit existing plans. Asset protection, control mechanisms, and tax consequences will all need reviewing.
4. Potential Changes to Negative Gearing and CGT
Although not yet legislated, Labor has signalled interest in revisiting negative gearing rules and capital gains tax concessions — especially in relation to investment property.
What this means:
If enacted, these changes could impact how clients borrow, invest, and time asset sales. Accountants should be prepared to explain shifting scenarios.
Why This Matters Now
While these reforms require support from the Senate to become law, the direction is clear: greater scrutiny, fewer concessions, and a stronger push for tax equity.
For accountants, this is the time to get ahead of the legislation and ensure clients are protected — and well positioned — in a changing environment.
Join Us at the 2025 TAG Super & Tax Strategies Day
To help you prepare, we invite you to attend the 2025 TAG Super and Tax Strategies Day — Australia’s longest-running seminar on superannuation and advanced tax planning.
This full-day event will cover:
• The latest legislative and regulatory updates
• Strategies for managing complex wealth transfers and restructures
• Tax-effective planning for retirement and succession
• Real-world case studies and practical tools for advisers and accountants
Equip yourself with the knowledge and strategies your clients need in 2025 and beyond.
REGISTER NOW
___________________
Disclaimer: The information contained is general in nature. Professional advice should be sought before acting on any aspect on this page. Financial planning services provided by TAG Financial Advisors Pty Ltd (ABN 77 154 205 017 AFSL 415632), a wholly owned subsidiary of TAG Financial Services Pty Ltd (ABN 67 075 374 686). Copyright 2025. Please do not reproduce without the expressed written consent of the author.