SMSF Association Media Release
The Federal Budget handed down this evening confirms the Albanese Government’s intention to proceed with a new tax on superannuation balances exceeding $3 million, and commits the Government to taking this ill-conceived initiative to the election.
SMSF Association chief executive officer, Peter Burgess, says the Government has ignored valid industry concerns and is now committed to taking this troubled new tax in full to the election.
“As a revenue item, tonight’s Budget was the last opportunity for the Government to either take this tax off the table or make changes to address the significant issues raised by industry and the Parliament.
“Material changes to this tax, which impact the Government’s previously budgeted revenue estimate for this proposed measure, would have needed to be reflected in the Budget.
“Considering there was no mention of changes, the Government is now committed to taking this tax to the next election, warts and all.”
Burgess says it was a complex tax initiative that would be difficult and costly for the ATO and the superannuation industry to implement. In particular, the proposal to tax unrealised capital gains was a radical departure from accepted tax principles and would have far reaching implications for many members of the community.
“It’s disappointing that the Government has decided to ride roughshod over these legitimate concerns. As we have said ad nauseum, it’s time for the Government to take this tax off the table and work with industry on an equitable solution to the problem they are trying to solve.”
Burgess says other simplification measures proposed by the SMSF Association and not included in the Budget include reducing the number of total super balance thresholds and simplifying the transfer balance cap regime.
These suggestions represented practical opportunities to reduce complexity and cost in the superannuation system.