Dr Anne Webster MP – Labor’s farmer tax grab battle reignites in Canberra – with an ugly…
The 48th Parliament has commenced with great ceremony in Canberra but the show has been stolen by leaked Treasury advice that the Albanese Government needs to raise taxes, bringing Labor’s superannuation tax into the spotlight, Member for Mallee Dr Anne Webster said today.
“The Nationals are not taking a backward step in fighting Labor’s retirement savings tax grab – we defeated it in the 47th Parliament, and we will fight to defeat it again,” Dr Webster said.
Labor’s plan to impose an additional 15 per cent on money in self-managed superannuation funds with balances over $3 million was halted due to a dynamic Senate blocking it in the last parliamentary term, but Labor could pass the legislation with the support of the Greens alone. The Greens have indicated they want to capture more superannuants, lowering the balance to $2 million, while Labor’s threshold is not indexed.
The National Farmers Federation reports the Superannuation Fund Association estimates there are around 17,000 super accounts holding farmland and of those 3,500 have land valued over the $3 million threshold.
Treasurer Chalmers said recently that the tax grab is “an important way that we fund some of our other priorities.”
The Parliamentary Budget Office projects that the Albanese Government’s asset tax grab could reap a rapidly increasing yield, from an initial $300 million in the first year to $7 billion per annum within 10 years.
“The ugly twist here is that for the first time, and without precedent anywhere in the world, Labor wants to tax ‘unrealised capital gains’. Your farmland might have increased in value, but you haven’t sold it – and you may never sell it – but Labor wants you to pay tax on that gain in capital value – every year. This tax grab is on increases on paper value alone” Dr Webster said.
“Labor are proposing tax on unrealised capital gains during very dry or drought conditions in western Victoria, adding insult to injury when Victorian Labor are imposing an ESVF levy on land values as well – and were embarrassed into a one-year reprieve in south-western Victoria due to drought.
“Labor does not comprehend that if there is no crop or there are low flock numbers, when the rain isn’t falling, farmers will not have the cashflow to pay the new super tax and the impost on unrealised capital gains.”
“Young farmers will be deterred from returning to the industry and this once again shows Labor are out of touch with the consequences of this reckless policy – so much so that even superannuation architect and former PM Paul Keating and the Australian Council of Trade Unions have been urging a re-think.”
Dr Webster said her recent Mallee’s Biggest Survey results continue to come in and while final results are some weeks away, the clear indication is a vast majority of Mallee residents are worried about Labor’s plans to tax retirement savings, and feel both personal income and business taxes are already too high.
“As I say, The Nationals are not taking a backward step after the 3 May election, as we demonstrated in ensuring the Coalition would stand strong for better regional telecommunications, protection for farmers in their dealings with supermarkets, a Regional Australia Future Fund and nuclear energy as part of our future energy mix.
“These positions, and what I am saying today on Labor’s retirement tax grab, are entirely consistent with the view of Mallee residents.”