Industry players also warned the tax will potentially hit more people than suggested, as draft laws released on Tuesday confirmed it would not be indexed.
The Albanese government has dug in on its controversial plan to tax unrealised gains on earnings from superannuation balances over $3 million, with industry experts and the opposition slamming Labor for failing to take on stakeholder feedback.
SMSF Association chief executive Peter Burgess said the government had not acted on concerns raised by accountants and other experts.“We weren’t expecting the government to back away from the $3 million threshold but we did remain optimistic that they would change their measurement of earnings,” he said.as part of the reforms in March, but faced widespread criticism from tax experts who warned it could force investors to sell illiquid assets such as property to fund the tax.
Mr Burgess suggested that the government was not serious about taking on feedback on the tax, noting that it had granted just two weeks for feedback on the proposed legislation. This follows the earlier consultation period for the proposal in April, which was also just a fortnight. Shadow treasurer Angus Taylor said that taxing unrealised gains was “not right for the times” given the strain currently faced by many small businesses and households with SMSFs.He also warned that the tax will include significantly more Australians than the 80,000 predicted to be hit in its first year as it is not indexed, accusing Labor of using the public’s retirement savings “as a honey pot to be raided”.Just 0.
Chartered Accountants ANZ superannuation leader Tony Negline said that it was “disappointing” that the government was not indexing the threshold despite it being one of “a laundry list of issues” raised in the proposal’s original consultation.
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