TasFarmers has issued a stern caution against the Federal Government’s proposal to tax unrealised capital gains on superannuation balances, denouncing it as “legalised theft” with far-reaching consequences for intergenerational farming, investment confidence, and the retirement savings of Australians.
With the economic landscape becoming more challenging for many Australians, TasFarmers contends that taxing unrealised earnings is not only out of touch but also economically unsound, especially given the increasing financial burdens faced by individuals.
TasFarmers President Ian Sauer emphasized that the proposed policy would impact all Australians with superannuation, not just the affluent or major investors. He highlighted that it would essentially be a tax on growth, aspirations, and the retirement funds of every Australian.
Under the outlined policy, unrealised gains on super balances exceeding $3 million would face annual taxation, a move that TasFarmers believes will disproportionately affect family and smaller farms, posing significant challenges for their sustainability and succession planning.
According to Mr. Sauer, many farmers rely on self-managed super funds for retirement planning and intergenerational asset transfer. Implementing such a tax could jeopardize their ability to preserve their family farms and plan effectively for the future.
Accountants in Tasmania have expressed concerns about the policy’s implications for their farming clients, while leading economists have criticized it as regressive and myopic in its approach.
Mr. Sauer asserted that the policy undermines the core purpose of superannuation, which is to facilitate self-funded retirement and reduce pressure on public welfare systems. By discouraging investment in super funds, the proposed tax could erode the system’s fundamental principles.
He further questioned the fairness of the policy, highlighting that it hinges on paper value rather than actual transactions, raising doubts about how individuals would be supported during market downturns.
TasFarmers is urging all political parties to reject the policy before the upcoming federal election, emphasizing the need for transparency and clarity to inform voters’ decisions.
While the Liberal Party has taken a firm stance against the proposal, TasFarmers is calling on the Labor Party to follow suit and provide unequivocal guidance to Australian voters.
As the debate surrounding superannuation taxation intensifies, it underscores the broader implications for financial planning, retirement security, and the future of agricultural enterprises across the country.
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