Written by Peter Burgess, CEO, SMSF Association
No one begrudges Treasury’s advice that Australia should have a fair and equitable superannuation system. However, continual claims that the proposed new tax on large superannuation balances will only affect a tiny minority and is in the national interest are shortsighted and fail to consider the ripple effect across the wider economy.
By focusing on a narrow aspect of the financial landscape, Treasury overlooks the vital connections between impacted superannuants, small business owners, primary producers, and angel investors. This oversight will disrupt the intricate balance of our economic ecosystem.
A commanding feature of Australia’s world-class superannuation system is its flexibility. Business owners and primary producers have, for many years, held their business premises or primary production land in an SMSF — to the tune of $100 billion. It has served them and the country well by spurring employment growth, investment, and innovation.
A deeply flawed feature of the proposed tax is its artificial construction and inflated measure of investment earnings that will be subject to this tax — a measure that inexplicably includes not just actual investment earnings but unrealised capital gains.
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