Transcript | Channel 7 National News at Noon | 05 June 2025

Thursday 05 June 2025 

Interview on Channel 7 National News at Noon 

Topics: Labor’s super tax will affect all Australians, weak GDP figures show economy on life support 

E&OE………………………………………………………………………………………………….

NATARSHA BELLING: Federal Treasurer Jim Chalmers claims he will not negotiate with the Coalition on Labor's controversial superannuation tax plans, implying he'd rather do a deal with the Greens while slamming critics of the policy. Shadow Finance Minister Senator James Paterson is one of those critics and he joins us this afternoon. Senator, thanks so much for your time.

JAMES PATERSON: Thanks for having me.

NATARSHA BELLING: Supporters claim this proposal is set to affect people with more than $3 million in their super fund with many arguing it's just a tax affecting rich Australians. Why would you argue the majority of Australians of all ages and incomes should be very concerned about this new super tax?

JAMES PATERSON: Well, for a couple of reasons. Firstly, it might only affect wealthy Australians today, but because the government is refusing to index the threshold over time, average income-earning Australians in their working lives will be caught by this tax. Secondly, it breaches a fundamental tax principle, which is it's going to start to tax paper profits. And if the government can get away with that, with superannuation - that is taxing the value of an increase in shares or property that hasn't yet been realised or materialized - then why would they stop there? Why wouldn't they tax elsewhere? And thirdly because this is a dodgy deal - that Jim Chalmers has exempted his boss from paying this tax during his working life. Anthony Albanese, unlike other taxpayers, will be able to defer his obligations under this tax until he retires. Everyone else who crosses the threshold will have to pay this tax during their working lives. So it's inequitable, it breaches fundamental tax principles, and it increases taxes, and the Liberal Party won't be helping a Labor Government increase taxes.

NATARSHA BELLING: As we mentioned earlier, there are reports today that the Treasurer Jim Chalmers will not negotiate with the Coalition. Now there are other reports coming out saying the Prime Minister will keep the door open to negotiate with the Coalition over this. What is going on?

JAMES PATERSON: That's a great question. Jim Chalmers and the Prime Minister really need to sit down and talk and work out their lines here, because for days they have been at odds with each other. The Prime Minister says he's up for negotiations. Jim Chalmers says he is not compromising on any element of this bill, including the unrealised capital gains or the un-indexed threshold. We're really clear about this in our principles, though. The Liberal Party is the party of lower tax. If Jim Chalmers wants to increase taxes, then his only dance partner is the Greens. Because the Greens, like the Labor Party, also support higher taxes and that's the way I think they'll end up going.

NATARSHA BELLING: Okay, the Greens have flagged they are possibly going to reduce the super tax threshold now to $2 million. Does this change or make the situation even worse, would you argue?

JAMES PATERSON: It would make the situation even worse by capturing a greater number of taxpayers right up front and it will make it additionally worse if they also fail to secure an indexation of that threshold, so that over time it rises with inflation rather than sticking at that threshold. Because if it stays at that threshold then many, many average income workers over time will be caught by it and we will all be ensnared in this tax. Given the state of the Australian economy with GDP figures out yesterday showing that we are in negative per capita growth, productivity is declining, business investment is declining  - the last thing the Australian economy needs is a new tax on investment, but that's exactly what Jim Chalmers is proposing.

NATARSHA BELLING: We appreciate your time this afternoon Senator James Paterson, thank you.

ENDS

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