Super contributions surge more than a third after budget tax changes

Australians are tipping more money into their super accounts after the federal budget cut back negative gearing and overhauled capital gains tax, with major funds reporting a 35 per cent annual jump in additional contributions by members.

For-profit funds MLC and Colonial First State, as well as the country’s largest fund AustralianSuper, have seen a rise in the amount of money members are putting into super in recent months, on top of the mandatory 12 per cent of wages.

Voluntary contributions rise every year in June as people seek to claim tax benefits before the end of the financial year, but the funds say the increases they have seen go beyond this annual jump.

MLC, owned by ASX-listed Insignia, said its data showed that between May and August this year, additional contributions to super were up by 35 per cent compared to the same time period in 2025 while AustralianSuper reported the same jump year-on-year in June.

The funds did not attribute the increase in contributions directly to Labor’s tax changes, but the trend follows tax changes aimed at making property investment a less attractive option, while leaving super’s tax concessions intact. The budget’s changes to capital gains are also likely to increase the tax burden from investing in high-growth businesses, critics say .

Private wealth adviser at Insignia-owned Shadforth Financial Group, Andrew Brunero, said he was unsurprised by the rise in voluntary contributions, and he thought the changes to negative gearing and capital gains tax were a “significant” factor behind the trend.

“The last few months with ... some of the recent tax changes and that side of it has definitely got people talking and thinking about superannuation more than they have,” he said.

“So, I’m not surprised that the trend has actually shown that the rate of contributions has been increasing over that period of time.”

Brunero said the changes to property taxation announced in the budget were probably a significant influence on many members’ decisions to put more into super. Under Labor’s changes, negative gearing will be restricted to newly built investment properties from next July, and the 50 per cent capital gains tax discount will be replaced with an inflation-adjusted model.

Brunero said most people used borrowed money to invest in property, and the changes were a “major headwind on the property investment front for a lot of investors”.

MLC chief customer officer Renee Howie said the fund had heard from members asking questions about “recent policy changes,” and added that the increase in contributions showed people were taking steps to save more for retirement.

“At MLC, we’re hearing from members who are paying closer attention to their super and asking more questions about how recent policy changes may affect them,” she said in a statement. “Moments like this often prompt people to check in on their super and consider whether there are steps they can take to improve their long-term financial confidence.”

AustralianSuper, which manages more than $430 billion, said voluntary contributions jumped 35 per cent year-on-year in June, and the increase has continued in July and August.