Jason Sedawie, Vice President of Investments at Spaceship Financial Services, underscored the significance of what remained unchanged in the budget, particularly the treatment of superannuation. "For investors, the most important thing about this budget is what didn't change: superannuation," Sedawie stated. He explained that superannuation continues to be taxed at 15% during the accumulation phase and remains tax-free in the pension phase. This stability, he argued, makes superannuation more tax-efficient compared to holding investments personally, especially with upcoming changes to the personal capital gains tax (CGT) discount.

Sedawie noted that the new budget measures, which aim to address housing issues, inadvertently impact shares and cryptocurrencies. "I'm disappointed shares and crypto were caught up in changes that were meant to address housing," he said. He emphasised the importance of helping younger Australians build wealth outside the family home through listed investments, superannuation, and long-term saving. "Anything that makes that path more complex or less rewarding works against the goal of a generation to build financial security," he added.

Despite these concerns, Sedawie pointed out that the budget's impact on established property is more significant than on shares. He suggested that a modest reallocation of household wealth from property towards listed assets and superannuation could provide a structural boost for domestic equity markets and products like Spaceship Voyager and Super. "Australia's residential property market is around AU$12.3 trillion, with investment properties making up roughly AU$3–3.5 trillion," he explained. "The chance to reallocate some of these funds into markets and superannuation is a silver lining."

Retail investors, Sedawie argued, have emerged relatively unscathed from the budget. He noted that property was hit harder with changes to CGT and negative gearing, while cash continues to lose to inflation, and term deposits are taxed at full marginal rates without inflation protection. "On any honest comparison, listed shares held for the long term remain one of the best ways for everyday Australians to build wealth outside their home," he asserted.

Robert Francis, Managing Director at eToro Australia and Spaceship, echoed some of Sedawie's sentiments, particularly regarding superannuation's exemption from the announced CGT changes. "The decision to keep super exempt from the announced CGT changes is a sensible one," Francis remarked. He highlighted the importance of maintaining a clear structure and purpose for superannuation, arguing that additional complexity would only confuse Australians planning for retirement.

However, Francis expressed concern about the broader implications of the budget for investments outside superannuation. "The government has framed this budget around intergenerational fairness, yet returning to the old system where gains were adjusted by inflation makes it harder for Australians to build wealth through property, shares and ETFs," he said. He warned that the changes to CGT effectively signal to Australians that their primary path to wealth is through superannuation, which may not be accessible until they reach their sixties.

Francis stressed that while superannuation is an excellent vehicle for retirement savings, its appeal should stand on its own merits. He argued that reducing the attractiveness of non-super investments limits Australians' ability to build wealth on their own terms. "This is particularly true for young Aussies who are already facing higher barriers to home ownership and rising costs of living," he noted. "These changes risk widening the gap between those who already have wealth locked into super or property, and those still trying to build it."

Both industry leaders advocate for consistent investment strategies amidst the changes. Sedawie advised investors to consider voluntary super contributions and consult tax professionals for specific circumstances. "For our customers, accumulating wealth through existing investments in our Voyager and Super offerings is grandfathered," he assured. "If anything, it's been reinforced."

As Australians digest the latest budget, the perspectives of Sedawie and Francis provide valuable insights into the evolving landscape of investment and wealth-building in the country.