The federal opposition has again attacked the policy proposal to impose a 15 per cent tax on total super balances over $3 million, repeating its vow to scrap the impost even if the Albanese government manages to have the bill passed in both houses.
During a Sky News television interview yesterday, shadow finance minister Jane Hume questioned the strength of the policy from its announcement.
“This is a policy that should have been doomed from the start,” Hume said.
“It’s a brand new kind of tax; one we haven’t seen in Australia before. One that hasn’t worked in any other jurisdiction.
“This was a terrible idea from go to whoa.
“The coalition has said not only would we vote against it, but should it pass and we get into government, then we will repeal this terrible Labor tax.”
The Division 296 tax bill can now only pass if it receives support from crossbench senators in the upper house, but to date this has not been forthcoming.
Currently, it has been acknowledged seven out of these members of parliament have outwardly opposed the bill, with David Pocock, David Van, Gerard Rennick, Pauline Hanson, Malcolm Roberts, Ralph Babet and Tammy Tyrell making up this cohort.
Senators from the Greens have not provided their support for the policy either, pushing for it to be amended to include a lower threshold of $2 million and a ban on limited recourse borrowing arrangements for their position to be changed.
Despite the impasse, the government stated in December it will continue to pursue the implementation of the measure on the grounds of improving the fairness of the country’s retirement savings framework.
“The focus for us is we have some unfinished business when it comes to some of the tax measures that we’ve already announced,” Treasurer Jim Chalmers said at the end of 2024.
