Family businesses of all sizes, from large to small, make up 70 per cent of all businesses in Australia, employing half of teh country’s workforce.
That’s why the Federal Government’s recent changes to its Better Targeted Superannuation Concessions policy is such welcome news for our sector. The Government has confirmed it will remove the proposed tax on unrealised gains and instead apply the measure only to realised earnings. It will also index the $3 million threshold, ensuring it rises with inflation and remains fair and sustainable over time.
According to our latest Family Business Barometer, 54 per cent of family business leaders say providing financial security for future generations is their top priority. This focus on intergenerational stewardship is one of the defining characteristics of the sector, and it’s why sound superannuation policy is so essential.
These sensible revisions by the Federal Government are a major win for family businesses following more than a year of strong, evidence-based advocacy from across the sector. It was consistently highlighted that taxing unrealised gains would have penalised responsible investors, undermined succession plans, and in certain specific cases, forced the sale of long-held family assets such as property to pay tax on paper profits that were never realised.
Family businesses don’t think in quarters, they think in generations. They make decisions that prioritise stability, legacy and income for family members over a short-term gain. Many build their wealth and retirement security through self-managed superannuation funds, which have been encouraged by governments for decades as a responsible way to save for the future.
When governments change laws that affect long-term investments it creates uncertainty – the enemy of good.
Superannuation Revisions: A Positive Step for Family Businesses
The Australian Government’s recent revisions to its superannuation approach, achieved through consultation and collaboration, demonstrate the power of partnership in delivering effective policy outcomes. This is notably welcome news for family businesses, which often operate on long-term horizons.
At the Family Business Association, we are committed to working constructively with the government to ensure policies reflect the unique realities of family enterprises. these businesses are built on long-term planning and generational thinking, and require a stable policy surroundings to thrive.
Family businesses aren’t seeking preferential treatment, but rather fair, stable, and sensible policies that acknowledge their significant contribution to australia’s economic success. The decision to remove the tax on unrealised gains and index the superannuation threshold are positive steps in this direction. These changes restore confidence, reward prudent financial management, and crucially, support long-term generational planning within family-owned businesses.
These adjustments acknowledge the importance of intergenerational wealth transfer and the role family businesses play in securing the financial future of many Australians. By fostering a more supportive environment for long-term investment, the government is empowering these businesses to continue contributing to the nation’s prosperity.
Catherine Sayer is the CEO of the Family Business Association.
get the latest Yahoo Finance news – follow us on Facebook,LinkedIn and Instagram.