Australians increase superannuation contributions following tax changes

Australians are significantly increasing voluntary superannuation contributions following federal budget changes to negative gearing and capital gains tax. Major funds, including AustralianSuper, MLC, and Colonial First State, have reported a 35 per cent annual rise in additional member contributions.

While voluntary contributions typically spike in June for tax benefits, industry data suggests this trend persists beyond the end of the financial year. Financial advisers note that the tax overhaul, which makes property investment less attractive while maintaining superannuation tax concessions, has prompted more individuals to prioritize retirement savings. Critics have also suggested that changes to capital gains tax may increase the tax burden on high-growth business investments, further driving interest in superannuation funds.