Government’s superannuation changes a major win for small and family business

The Council of Small Business Organisations Australia (COSBOA) and Family Business Association (FBA) have welcomed the Government’s revised Better Targeted Superannuation Concessions policy, calling it a major win for small and family businesses following more than a year of advocacy from both organisations.

Under the updated design, the Government has confirmed it will remove the proposed tax on unrealised gains and instead apply the measure to realised earnings only – meaning small and family business owners will no longer face tax bills on paper increases in property or other assets held within their superannuation. The policy also introduces indexation of the $3 million threshold, ensuring it rises with inflation and remains fair and sustainable over time.

This outcome follows consistent and constructive engagement by COSBOA and FBA since 2024, when the organisations first raised concerns about the impact of taxing unrealised gains on small business operators and family enterprises with self-managed superannuation funds. Both groups argued that the original proposal would have penalised responsible investors, disrupted succession planning, and risked forcing the sale of long-held business premises to meet tax obligations on unrealised values.

Matthew Addison, Chair, COSBOA, said: “We are pleased that the Government has listened to and engaged with the small business community on its serious concerns about the taxation of unrealised gains. Such a measure would have negatively impacted thousands of small businesses with commercial assets held in superannuation. This is a sound and sensible policy outcome.”

Catherine Sayer, CEO, Family Business Association, said: “On behalf of our members, who represent 70 per cent of Australian businesses and 50 per cent of the workforce, we welcome the Government’s decision to remove the proposed taxation on unrealised gains and, importantly, to index the balance of superannuation funds.”

Both organisations said the revised approach reflects a mature and evidence-based outcome that restores confidence in Australia’s superannuation system and recognises the legitimate role of small and family business owners in building their retirement savings.

“This is a win for common-sense policy and for collaboration,” Mr Addison and Ms Sayer said in a joint statement. “It shows what can be achieved when government listens, and when advocacy from the business community is constructive and solutions-focused.”

COSBOA and FBA said their focus now turns to ensuring the implementation of the new framework is clear and practical, and supportive of continued investment, succession and retirement security for small and family business owners.

-ENDS-

For media enquiries or interviews, please contact Matthew Addison, Chair, COSBOA on chair@cosboa.org.au or call +61 (0) 421 553 613.

About COSBOA

Established in 1979, The Council of Small Business Organisations Australia (COSBOA) is a member based not-for-profit organisation exclusively representing the interests of small businesses. The capability, representation, and reach of COSBOA are defined by a mix of over 50 national and state-based members. COSBOA's strength is its capacity to harness its members' views and advance consensus across policy areas common to many.

Our member organisations work with the COSBOA team to assist us with policy development and guide our advocacy - not just for small businesses but also for the benefit of the Australians they employ. In this capacity, COSBOA makes submissions and representations to the government, including its agencies, on issues affecting small businesses and to pursue good policy.