Treasurer doubles down on $3m super tax
Treasurer Jim Chalmers has said the government has “made it clear” it has not changed its policy position on the $3 million super tax legislation.
In a number of interviews on Tuesday, following the swearing in of the new cabinet, Chalmers was asked about the controversial tax that has been garnering increasing media attention since the final weeks of the election campaign.
The proposed legislation has been lambasted not just by the SMSF and financial sector but has been repeatedly criticised by the business industry, including leaders of the corporate sector.
Political opposition has also been gathering momentum, including from former treasurer Paul Keating, who was responsible for introducing compulsory superannuation to Australia more than four decades ago.
It was reported in September 2024 that Keating warned that the plan to double the tax on retirement savings over $3 million could turn superannuation into a low- and middle-income pension scheme and damage community confidence in the $3.9 trillion savings system.
However, on Tuesday, Chalmers said this government had announced the policy more than two years ago and had done extensive consultation on it.
“It is a policy that affects 0.5 per cent of people with balances above $3 million. It is still a concessional tax treatment for people. It’s slightly less concessional. And it helps us fund things like stronger Medicare or tax cuts or cost‑of‑living help or building more homes. And so it’s an important part of our budget,” he said.
“The calculation of unrealised gains exists elsewhere in the super system. It’s not unique to what we are proposing. It affects very few people. It’s still concessional treatment. It’s been part of our budget for a little while now. It’s been before the parliament for a little while now, and we haven’t changed our approach to it.”
Chalmers said it is not unusual for tax changes to be legislated after a start date and added that he has been making the same point “repeatedly, really more or less since we first announced these changes more than two years ago”.
“This is a modest change which impacts a tiny sliver of the population.”
“And it makes an important contribution to the budget, to priorities like strengthening Medicare, the tax cuts, building more homes. It’s been in the parliament for a long time now. It’s a modest change that impacts a tiny amount of people and still provides concessional tax treatment for people in super.”
