The 2026-27 Federal Budget, Part 5: SMSFs and Wealth Building After the 2026 Budget and Where Super Still Fits
- Zac Hayes
- May 29
- 6 min read
A lot of Australians hear the word "super" and immediately switch off.
It feels complicated, restrictive, and full of finance jargon.
But when you strip it all back, superannuation is simply one of the most tax effective ways Australians can build long term wealth.
And after the 2026 Federal Budget changes, that has become even more important.
The reason is simple.
While many tax rules became tougher for trusts and property investors, the rules around super largely stayed the same.
That means super has become even more valuable as part of a long-term wealth strategy.
Especially for business owners, investors, and families building assets over time.
A note on timing: several of the Budget measures mentioned in this article are announced and not yet law. They are subject to legislation passing Parliament and the final design may change. The current direction is clear enough to start planning, but the detail will firm up over coming months.
What Is an SMSF?
An SMSF is a Self-Managed Super Fund.
Instead of your super being managed entirely by a large industry or retail fund, an SMSF gives you more control over how your super money is invested.
That can include things like:
• Property
• Shares
• Managed funds
• Cash investments
• Commercial buildings used by your business
For many people, the biggest appeal is flexibility and control.
But it is important to understand this properly.
An SMSF is not a shortcut to avoid tax.
And it is not something people should set up just because they heard about it online.
It needs to suit your goals, your financial position, and your long term plans.
Why Super Is Still So Powerful
One of the biggest reasons super matters is because of the tax rates inside the system.
For most people:
• Earnings inside super are generally taxed at 15%
• In retirement phase, earnings supporting a pension can potentially become tax free, subject to the transfer balance cap
• Long term capital gains inside super are taxed far lower than personal tax rates
That is a huge difference compared with normal personal tax rates.
For someone on a high income, personal tax can reach 47%.
So even after the Budget changes, super still remains one of the most tax effective wealth building tools available in Australia.
Not Sure Where Super Fits in Your Strategy?
Super can be a powerful wealth-building tool, but it needs to work alongside your business, investment and personal structures.
If you are unsure whether your current setup is still working effectively after the 2026 Budget changes, now is the time to review it properly.
Book a strategy session with Zac to understand where super, SMSFs and your broader wealth structure may fit.
The Catch Most People Forget
Super is powerful because of the tax benefits.
But there is a trade off.
The money is generally locked away until retirement age.
That means super works best for long term wealth building, not short term access to cash.
This is why many successful business owners and investors build wealth in two different areas:
• Wealth outside super for flexibility today
• Wealth inside super for retirement later
The two strategies work together.
Not against each other.
What Actually Changed After the 2026 Budget?
This is where the conversation becomes important.
The 2026 Budget announced major changes for:
• Trusts
• Capital gains tax
• Investment income flowing through structures
But super was largely left alone.
Importantly:
• SMSFs were excluded from the proposed 30% minimum trust tax
• SMSFs were excluded from the proposed CGT discount changes
• The tax treatment inside super largely remained the same
In simple terms:
The rules around trusts and investments are becoming tougher.
But super kept many of its existing advantages.
That means super has arguably become even more attractive relative to other structures.
Super is still one of the strongest long-term wealth building tools available in Australia, but how you use it before EOFY may shape what is possible over the next several years.
The Business and Wealth Collective's EOFY Strategy Session can help you review your contribution position, your structure, and whether your SMSF, trust and investment arrangements are still working together properly under the new Budget framework.
Why Many Business Owners Use SMSFs
For business owners, SMSFs can become incredibly powerful when used properly.
One of the biggest reasons is control.
An SMSF allows business owners to make decisions around:
• What assets are purchased
• How investments are managed
• Whether commercial property is owned inside super
• Long term retirement planning
This becomes especially valuable for people building serious wealth over time.
The "Be Your Own Landlord" Strategy
This is one of the most common SMSF strategies for business owners.
Let's say your business rents a commercial building.
Instead of paying rent to someone else forever, your SMSF may eventually purchase the building and lease it back to your business under strict superannuation rules.
In simple terms:
• Your business pays rent
• The rent goes into your SMSF
• The SMSF builds wealth over time
• The property may eventually support your retirement
For many business owners, this becomes a major long term wealth strategy.
Instead of helping someone else retire through rent payments, you are potentially helping fund your own retirement.
A Simple Example
Imagine your business pays:
• $80,000 per year in commercial rent
If that property is owned by your SMSF:
• The business still claims the rent as a business expense
• The SMSF receives the rental income
• The income inside super is taxed concessionally
• The property may grow in value over time inside the super environment
Over 10, 15, or 20 years, this can become a very powerful wealth building strategy.
Especially for business owners planning long term.
Why Structure Still Matters
One mistake many people make is looking at super in isolation.
The reality is that good wealth planning usually combines multiple structures together.
For example:
• A business structure for earning income today
• Investment structures for flexibility
• Superannuation for retirement wealth later
Each structure has a different purpose.
The goal is creating balance between:
• Tax efficiency
• Flexibility
• Asset protection
• Retirement planning
• Family wealth planning
What About the New $3 Million Super Tax?
One major super change is Division 296.
This applies from 1 July 2026 to individuals with total super balances above $3 million.
A second threshold also applies at $10 million, with earnings attributable to balances above that amount taxed at an additional rate.
Importantly, the final legislation only taxes realised earnings, not unrealised gains as originally proposed.
For most Australians, this is not an immediate issue.
But for higher wealth families, it does mean planning becomes more important.
Importantly though, even with these changes, super can still remain very tax effective compared with many alternatives.
Especially after the new trust and CGT changes announced in the Budget.
The Bigger Picture
A lot of people focus too heavily on short term tax savings.
But the people who usually build long term wealth think differently.
They focus on:
• Long term investing
• Sustainable structures
• Asset protection
• Retirement planning
• Consistent wealth creation over decades
That is where SMSFs can become incredibly powerful when used properly.
Not because they are trendy.
But because they can form part of a much bigger long-term strategy.
When an SMSF May Be Worth Exploring
You may want to review whether an SMSF is suitable if:
• Your super balance is growing
• You own a business
• You want more control over investments
• You are considering commercial property
• You are focused on long term retirement planning
• You are building wealth across multiple structures
• You want to better understand how the new Budget changes affect you
An SMSF is not right for everyone.
But for the right people, it can become a very effective long term planning tool.
If you are unsure whether your SMSF, trust structure or investment arrangements still make sense after the new Budget changes, now is the right time to review it properly.
Reserve your EOFY Strategy Session with The Business and Wealth Collective before 30 June.
Final Thoughts
The 2026 Budget announced a lot of changes around trusts, investment income, and capital gains.
But super remained relatively protected.
That means SMSFs have become even more important for many Australians building long term wealth.
The key is not chasing shortcuts or tax tricks.
The key is building a strategy that:
• Protects your wealth
• Creates flexibility
• Supports retirement
• Adapts as rules change
• Works long term
Because the people who usually build lasting wealth are not relying on one single structure.
They are building a complete long-term plan.
General Information Disclaimer
This article provides general information only and does not take into account your personal circumstances, objectives, financial situation, tax position or legal structure. It is not personal tax, financial, legal or investment advice.
The Federal Budget measures discussed in this article were announced on 12 May 2026 and many require legislation, regulations, ATO guidance or further program detail before they take effect. The final rules, eligibility criteria, thresholds, timing and practical outcomes may change.
Before making decisions about tax, superannuation, property, trusts, business structures, investments, asset sales or contributions, you should obtain advice based on your specific circumstances.
The Business & Wealth Collective can help you review your position and identify which areas may require further advice before EOFY.
Tax agent services within The Business & Wealth Collective are provided by Configured Business Solutions Pty Ltd (Tax Agent No. 26109304).
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