Labor's super tax 'cannot be fixed'

Monday 02 June 2025

Clare Armstrong

The Daily Telegraph

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 Senator lashes 'bad bill'
 
 Federal Labor's plan to tax -unrealised gains in large super balances is  "unsalvageable" and cannot be fixed to prevent some politicians being treated differently under the scheme, the Coalition has warned.
 
 Opposition finance spokesman Senator James Paterson said if Labor's superannuation tax increase on fund balances above $3m only applied to income or capital gains in the "normal way" then Anthony Albanese  and other veteran public officials eligible for defined benefit pensions  would be captured in the same way as other Australians.
 
 "There is no amendment that fixes the contradiction at the heart of it, which is, we don't tax people on a profit they haven't actually  received," Senator Paterson said.
 
 He said Labor's "cupboard is completely bare" when it came to  "genuine" economic reforms and vowed the Coalition would release its own plan to boost productivity and bring down debt earlier this term.
 
 Labor's plan to raise the concessional tax on super from 15 per cent to 30 per cent for balances over $3m has been widely criticised for also applying to non-monetary assets, like property or shares.
 
 It means people with mega balances would get a tax bill for any increased value on these assets, despite the financial "gain" not being realised.
 
 The Albanese government has come under pressure following revelations that due to constitutional rules, politicians and public servants on the old defined benefits pension scheme would be able to defer payment of any unrealised gains tax until retirement.
 
 Yesterday, Employment and Workplace Minister Amanda Rishworth acknowledged people on this old scheme would be treated "differently", but would not say when politicians like Mr Albanese would need to pay. The Prime Minister said the tax "applies across the board" meaning anyone with a balance over $3m ultimately had to pay it.
 
 Senator Paterson said the Coalition would fight Labor's bill but was "realistic" about it inevitably passing parliament with support of the Greens.
 
 "We'll try and make a bad bill a bit less bad," he said.
 
 Reflecting on his new role, Senator Paterson said he would be "laser focused" on the budget debt and deficit.
 
 "One of the things that we should have done more of in the last term, but absolutely must do in this term, is articulate our long-term vision for the country and particularly for the economy," he said.
 
 Senator Paterson said Labor would have to demonstrate in its coming budgets how to pay for the services it had promised Australians.
 
 "I think it's time for an adult, grown-up-conversation with the Australian people about the services you expect and how we pay for  them," he said.