Treasury confirms modelling super tax alternatives

The Federal Treasury is preparing to have another consultation around the suitability and effectiveness of the superannuation performance test.

Treasury officials confirmed the preparations while answering questions during Senate Estimates this week, agreeing that the preparatory moves came, in part, out of the economic roundtable held by Treasury, Jim Chalmers, earlier this year.

Treasury officials also confirmed to the Senate Economics Committee as part of the Estimates Process that it had conducted further modelling around the Government’s $3 million superannuation cap tax proposals and the taxation of unrealised capital gains.

Treasury deputy secretary, Diane Brown confirmed the modelling work stating that it had been prompted by stakeholder feedback.

Brown also confirmed that there had been interactions with the office of the Prime Minister, Anthony Albanese, on the implications of the proposed superannuation legislation.

When pressed on the issue, Brown said that while Treasury had looked at and modelled issues raised, that did not extend to redrafting.

With respect to the superannuation performance test, the Treasury officials acknowledged that issues had been raised during the Economic roundtable about “herding” around particular types of investment at the expense of others.

They acknowledged those concerns had emanated from superannuation funds themselves and property funds.

Tasmanian Green Senator, Nick McKim pointed out that the performance test had already been the subject of a Treasury consultation and sought clarity around the objectives of a further consultative process.

He questioned whether it would be focused on the negative impacts of investment herding on productivity.