New consumer research has revealed Labor’s proposed Division 296 tax has resulted in a mistrust of the government on retirement savings policy and concern unannounced measures will be introduced should the ALP win this year’s federal election.
The study was performed by CT Group on behalf of the Financial Services Council (FSC) and found trust in the government regarding superannuation taxes fell from a net negative of 13 per cent initially, with 31 per cent trusting the Labor Party and 44 per cent distrusting, to a net negative of 18 per cent, with 28 per cent trusting the ALP and 46 per cent distrusting. The fall coincided with Treasurer Jim Chalmers’ recommitment to introduce the new impost on total super balances over $3 million, otherwise referred to as the Division 296 tax.
Further, respondents recorded a net positive result of 46 per cent when asked if they were concerned Labor would introduce additional superannuation taxes if re-elected. Here, 73 per cent of Australians thought it somewhat or very likely the Albanese government will introduce further tax changes to super if they are re-elected at the upcoming election, with only 27 per cent thinking it was unlikely.
“Australians do not trust politicians with their superannuation, but are particularly unnerved by the government’s renewed push to increase taxes on their retirement savings in the final weeks of this parliament,” FSC chief executive Blake Briggs noted regarding the survey results.
“The government’s legislated objective for the superannuation system is to deliver income for a dignified retirement for Australian consumers. The government’s superannuation tax should be withdrawn in favour of an economy-wide and evidence-based tax review after the next election.
“The government’s superannuation tax breaches fundamental tax policy principles by taxing unrealised gains and the incidence of the tax will have the greatest impact on young Australians as a result of the deliberate decision not to index the $3 million threshold.”
The analysis indicated Australians’ view of the Liberal Party on the subject was more optimistic, with the opposition initially recording a net negative percentage of 5, with 34 per cent trusting it and 40 per cent distrusting, but with sentiment shifting to a net positive of 4 per cent, with 39 per cent trusting the coalition and 35 per cent distrusting, after participants were informed of its commitment to protect the public’s retirement savings from any unfair new taxes.
The research was conducted between 16 and 31 January, with 2523 superannuants taking part.