Senate crossbench urged to hold firm on $3m tax cap bill

Major accounting group, Chartered Accountants ANZ, is urging that the legislation delivering the Government’s $3 million superannuation tax cap and a tax on unrealised capital gains does not surface again in the Senate before Parliament is prorogued.

CA-ANZ chief executive, Ainslie van Onselen has welcomed the fact that the legislation did not fit into the Senate schedule last week and urged the Senate cross-bench to ensure it did not progress.

She said the legislation could see individuals with more than $3 million in superannuation assets forced to borrow money or sell assets to pay tax bills.

“The Treasury Laws Amendment (Better Targeted Superannuation Concessions) Bill 2023 sought to tax unrealised gains in Australia for the first time – setting a dangerous precedent,” van Onselen said.

“This Bill sets a dangerous precedent that should have been shut down by the Senate. What’s next? A tax on the unrealised value of the family home above $3 million?” she said.

The Bill was due to be debated (last Thursday) but was delayed in what could have been the last sitting week of Parliament before the election is called.

Noting that CA-ANZ had opposed the policy since it was announced in February 2023, van Onselen urged the cross-bench not to support the bill if Parliament actually resumes sitting in March.

“The government’s changes to super would have seen tax increase from 15 per cent to 30 per cent on super funds above $3 million, leaving Australians with tax bills in the tens of thousands right in the middle of a cost-of-living crisis,” Ms van Onselen said.

“It would have captured unrealised gains held in self-managed funds, such as farms and small businesses, and unfairly penalised Australians who have been advised and encouraged to keep their assets in their super funds.

“For some hard-working Australians, the only way to pay these taxes would be to take out a loan or sell their assets – a frankly ridiculous notion.”