SMSF Association chief executive Peter Burgess said the government has continued to ignore the concerns of the super industry even as the measure has been rebuffed in the Senate.

“As a revenue item, tonight’s budget was the last opportunity for the government to either take this tax off the table or make changes to address the significant issues raised by industry and the Parliament,” Burgess said.

“Material changes to this tax, which impact the government’s previously budgeted revenue estimate for this proposed measure, would have needed to be reflected in the budget.

“Considering there was no mention of changes, the government is now committed to taking this tax to the next election, warts and all.”

The CEO added that it is a complex tax initiative and would be difficult and costly for both the ATO and broader superannuation industry.

“It’s disappointing that the government has decided to ride roughshod over these legitimate concerns. As we have said ad nauseum, it’s time for the government to take this tax off the table and work with industry on an equitable solution to the problem they are trying to solve,” Burgess said.

Other “simplification measures” proposed by the SMSF Association, such as reducing the number of total super balance thresholds and simplifying the transfer balance cap regime, were also not included in the budget.

What is in the budget?

Treasurer Jim Chalmers declared that the government has engineered the largest fiscal turnaround in a single term, with this year's budget $207 billion better than what it inherited.

"In our first two years, we posted the first back to back surpluses in nearly two decades," Chalmers said, underscoring the government's fiscal prowess.

"Our deficit this year has almost halved since we came to office," he added, with the $27.6 billion deficit for 2024–25 coming in at nearly half the level predicted in the PEFO.

“Next year’s deficit is $42 billion, lower than what was forecast at the last election, and lower than at the mid year update,” he said.

Gross debt is set to reach $940 billion this financial year, $177 billion less than the inherited level, saving around $60 billion in interest costs over the decade, Chalmers said.

According to budget papers, gross debt as a share of the economy is expected to peak at 37.0 per cent of GDP in 2029–30, 7.9 percentage points lower than the peak in the PEFO, before declining to 31.9 per cent of GDP by 2035–36.

The government attributes what it perceives as fiscal gains to responsible economic management, combining spending restraint, savings measures, and banking revenue upgrades.

Since taking office, the government, Chalmers said, has identified $94 billion in savings, including an additional $2 billion in this budget.

Around 70 per cent of tax receipt upgrades have been banked, with structural improvements made across the NDIS, aged care, and interest costs.

Looking ahead, Chalmers said key priorities for the Labor government include tackling inflation, rebuilding living standards, and leveraging national strengths for future growth.

The budget is built around five main priorities: easing the cost of living, strengthening Medicare, increasing housing supply, investing in education at all levels, and making the economy more productive and resilient.

On the latter point, Chalmers said: “This is one way to ensure Australians can be primary beneficiaries of the churn and change we see around the world.

“Another is by investing in our competitive advantages. Or by looking for opportunities to join with our partners in new, resilient supply chains. By becoming an indispensable part of the net zero economy. By preparing our people to adjust to and succeed in the new world being created in front of us. By building a Future Made in Australia.”

The budget also confirmed tax cuts of $17.1 billion tax cut over five years in what is Labor's final major spending measure before polling day.

The budget papers said the tax cuts would see a worker on average earnings receive a new tax cut of $268 in 2026–27 and $536 per year from 2027–28, compared to 2024–25 tax settings.

"Combined with the first round of tax cuts, they will receive a total tax cut of $1,922 in 2026–27 and $2,190 per year from 2027–28, compared to 2023–24 tax settings," the papers said.

"In 2027–28, the average combined annual tax cut across all taxpayers is expected to be $2,548, or around $50 per week."

The government said the combined tax cuts would allow people to keep more of what they earn, "boosting nominal household disposable income by 1.9 per cent by 2027–28".

FAAA general manager, policy, advocacy and standards Phil Anderson pointed to how thin the budget was for financial services, particularly advice.

“There is very little news in this federal budget and it is light on detail. Notable omissions for our profession include any CSLR or ASIC levy relief and no action on access to the ATO Portal," Anderson said.

“The lack of detail in the Budget follows the recent release (on Friday 21 March) of the next tranche of draft legislation for the Delivering Better Financial Outcomes reforms, which were also frustrating in their lack of scope and detail.

“It is disappointing that the government has not been able to move ahead on a clear pathway in improving the accessibility and affordability of financial advice, at a time when an increasing number of Australians would benefit from professional quality advice.”

ASIC and small business

The Australian Securities and Investments Commission (ASIC) secured additional funding, with the government aiming to improve the corporate regulator’s ability to identify and take enforcement action against those involved in illegal phoenixing conduct.

While this conduct has become a hot topic in financial advice on the back of the Dixon Advisory collapse and its parent company Evans and Partners putting the firm into administration, the focus in the budget papers was on “sectors that are more susceptible and impacted by such conduct, particularly construction”.

As part of the measures, the government will provide funding to the tune of $207 million over two years from 2025–26 to continue the stabilisation of Australia’s business registers and undertake targeted uplifts, including linking Director Identification Numbers to the Company Register.

“This reform will improve the quality of information available to investors and creditors about directors and further support efforts to combat illegal phoenixing,” the budget papers said.

Small business energy relief has remained in the 2025-26 budget, with around 1 million eligible small businesses set to receive $75 per quarter off their energy bills in the September and December quarters.

This commitment from the government totals about $1.8 billion to extend the energy relief measures for a further six months.

“Over the last three budgets, energy bill relief has reduced small business energy bills by up to $800,” the budget papers said.

The budget boasted that the government has invested more than $60 million to help small businesses “uplift” their cyber security and digital capabilities through the Digital Solutions program, Cyber Wardens program, Cyber Resilience Service and the Cyber Health Check.

“Together, these programs help small businesses adopt digital tools and grasp the opportunities that going online offers, while supporting small businesses to prevent and bounce back from cyber incidents.”