TasFarmers, Media Release, 1 May 2025
TasFarmers has issued a strong warning against the Federal Government’s proposal to tax unrealised capital gains on superannuation balances, calling it “legalised theft” that threatens intergenerational farming, investment confidence, and the retirement savings of everyday Australians.
With more Australians working second jobs just to stay afloat, and cost-of-living pressures mounting, TasFarmers says taxing people’s earnings that at haven’t been realised, or may never be, is not only out of touch, but economically reckless.
TasFarmers President Ian Sauer stressed that the impact would extend far beyond high-wealth individuals.
“This isn’t just a debate for the wealthy or big investors. It will affect every Australian with superannuation,” Mr Sauer said.
“It’s a tax on growth, aspiration, and ultimately, the retirement savings of every Australian.”
Under the proposed policy, set to be legislated if Labor wins the election unrealised gains on super balances exceeding $3 million would be taxed annually.
Mr Sauer warned the consequences would be particularly severe for farmers.
“This will hit family and smaller farms hard. Many farmers use self-managed super funds to plan for retirement and manage generational transition. If this goes ahead, it will make it significantly harder to keep farms in the family and plan with confidence.
“These family operations often don’t have the liquidity to cover a tax on paper gains. Unlike larger businesses, they can’t simply carve off a portion of their land each year to meet the bill. This could leave them in an impossible position – forced to sell the entire property just to pay a tax on income they’ve never actually received,” said Mr Sauer.
Tasmanian accountants have already raised concerns about the impacts on farming clients, and leading economists have labelled the policy regressive and short-sighted.
“Superannuation was designed to support self-funded retirement and ease the burden on the public purse,” Mr Sauer said.
“By discouraging investment in super, this policy undermines the very foundation of the system.”
He added that the policy fails a basic fairness test.
“No real money changes hands, It’s based on paper value. And as markets rise, they also fall. Will the government be compensating people during downturns?”
TasFarmers is calling on all political parties to rule out the policy ahead of Saturday’s federal election.
“The Liberal Party has made its position clear and they’ll oppose it. Labor needs to do the same. Australians deserve clarity before they cast their vote.”
