Senate demonstrates numbers matter on $3m super tax
ANALYSIS
Anyone wondering about the future of the legislation underpinning the $3 million superannuation ceiling and imposing a tax on unrealised capital gains need only look at the Government’s retreat on the Tax Agent Services (Code of Professional Conduct) Determination.
The simple bottom line is that the Government knew it did not have the numbers in the Senate to avoid disallowance of the Determination and therefore defused the issue by stating in the Senate that it had committed to changes to the Determination to be finalised early next month. That concession gave it just enough lee-way to gain the qualified support of ACT independent senator, David Pocock.
The Government also does not have the numbers with respect to the taxation of unrealised capital gains.
In short, the so-called joint bodies representing the major accounting and advice groups outmanoeuvred the Treasury backers of the changes to the TASA Code of Conduct.
It says something about the numbers that the disallowance motion was driven by the Federal Opposition and that the attitude of the cross-benchers was reflected in a statement by ACT independent, Senator David Pocock, who said “I share the concerns that industry representatives have raised around the poor process and consultation” but argued that the the Government’s concessions should be sufficient to delay disallowance, for now.
Little wonder then, that Chartered Accountants Australia and New Zealand chief executive, Ainslie van Onselen described it as “a major advocacy win”.
CPA Australia was somewhat more diplomatic, describing the outcome in the Senate as being “significant progress” in the profession’s efforts to secure amendments to the Determination.
“Our meetings with the Assistant Treasurer and Treasury have been very constructive and many of our concerns are being addressed, including the sections of the Determination requiring tax agents to ’dob in’ their clients and to advise clients of irrelevant personal information. The Government committed to these changes during the discussion on the motion to disallow the Determination in the Senate.
What needs to be understood is that the Government is facing a similar Senate dynamic with respect to its Treasury Laws Amendment (Better Targeted Superannuation Concessions and other Measures Bill), particularly around the taxation of unrealised capital gains.
The Government will get its $3 million super tax cap, but the Senate numbers did not line up with respect to taxing unrealised capital gains.
How about some more BS triplicated Regulations for Advisers hey Jonesy.
Every time this clown says let’s reduce Red Tape, let’s fix the Hot Mess of Govt mass Over Regulation.
Somehow this clown and his Treasury buffoons give us MORE BLOODY RED TAPE !!!!!
The only thing Canberra manufactures is BLOODY RED TAPE.
FFS it is never enough for Canberra.
Little wonder then, that Chartered Accountants Australia and New Zealand chief executive, Ainslie van Onselen described it as “a major advocacy win”.
It proven again we simply don’t have the numbers to be ever taken seriously from Lobby perspective, that’s why we’ll just get knocked down again and again, until it will dawn on even the most positive Industry advocates that there is a better way to earn a living!