Patience urged over Div 296

Industry groups continue to speak out against the government's 30% tax on superannuation assets above $3 million, but those with large accounts have been urged not to make any fast changes.

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The SMSF Association (SMSFA) is repeating calls for the government to address "catastrophic" flaws in its proposed superannuation tax.

SMSFA chief executive Peter Burgess said the critical flaw in the proposed tax is its calculation of investment earnings, which "inexplicably includes unrealised capital gains".

Burgess said this would penalise SMSF members for paper profits that may never materialise.

"No one disputes Treasury's desire for a fair and equitable superannuation system, but to claim this tax only affects a minority and serves the national interest is shortsighted. It ignores the broader ripple effects," Burgess said.