Superannuation contributions jump 35% as budget reforms curb property incentives

Data from MLC, Colonial First State and AustralianSuper show a 35% year-on-year rise in voluntary super contributions during the months of May to August. The increase coincides with the federal budget’s overhaul of negative gearing, restricting it to newly built investment properties, and the replacement of the 50% capital gains tax discount with an inflation-linked formula. Financial advisers, including Andrew Brunero of Shadforth Financial Group, attribute the trend to heightened attention on superannuation as a tax-effective savings vehicle.

Fund representatives noted that members, particularly those aged 50 to 66, are boosting their retirement savings, while younger members are also contributing more than usual. The funds did not directly link the surge to the budget, but the timing suggests the policy changes are influencing saver behaviour. Economists such as Saul Eslake see the shift as a positive move toward stronger retirement outcomes.