Monday, March 4, 2024

Concern over lack of consultation on superannuation tax increase: TFGA

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Tasmania Farmers and Graziers Association (TFGA), Media Release, 3 March 2023

The Tasmanian Farmers and Graziers (TFGA) oppose Treasurer Jim Chalmers proposed increase on the superannuation tax rate to collect an additional $2 billion annually from hardworking Australians and Farmers.

The government’s attempt to repair the budget and failure to consult with the people it will impact the most is unacceptable in any policy sense.

CEO of the TFGA, Hugh Christie, said this policy decision to effectively double the tax rate for every hardworking Australian from 15 per cent to 30 per cent would be devastating for future investments into farming.

“As the agriculture industry aims to reach $100 billion in farm gate output by 2023, AgriFutures Australia estimates that the industry will require an investment of $3 billion dollars in capital to achieve this.

“Over five years, the government will effectively reduce the markets access to $10 billion of capital,” he said.

“The design of superannuation is to assist ordinary Australian households on a scale that they couldn’t achieve alone.

“The decision will impact the government’s estimate of 80,000 Australians and the 23.2 million super accounts under management by super funds.

“The growth of super funds in private asset investment, in fact, helps everyday Australians by allowing funds to diversify risk and invest in private assets even the wealthiest Australian cannot easily access

Instead of closing the gap between the richest and poorest of the nation, the government will successfully open the gulf further with this policy decision.” he said.

Mr Christie said: “We want to avoid damaging investment into what is a successful growth industry for the nation, especially one which plays such a pivotal role in employment in regional Australia”.

The TFGA urges the government to rewind its policy decision and work collaboratively with all stakeholders. We wish to find a solution that supports the growth and development of the agriculture industry without imposing more financial stress on everyday Australians.’

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