Federal Member for Riverina Michael McCormack MP.
Federal Member for Parkes Michael McCormack slammed the Albanese Labor Government’s proposed superannuation tax changes as a betrayal of its pre-election promise not to touch super.
Mr McCormack said the proposed changes to increase tax on unrealised gains to 30 per cent were not only a betrayal but also fundamentally flawed policy that would disadvantage farmers and young people into the future.
“Labor’s proposed changes are an absolute betrayal of the Australian public who expect consistency and honesty from the Government when it comes to superannuation,” Mr McCormack said.
“How can people have the confidence necessary to make investments into their retirement when Labor backflips on its promises and change the rules?”
Mr McCormack said he was particularly concerned about how the proposed changes would affect farmers and young workers. “While Labor might think the $3 million threshold only hurts the big guys, they have forgotten that many farmers own their farms through self-managed super funds – and $3 million doesn’t buy a lot of farm.
“These are businesses that face a lot of uncertainty and volatility in terms of weather, natural disasters, land and global commodity prices. To tax unrealised gains at 30 per cent when a farmer never knows what’s in store for them next season is just bound to hurt farmers’ ability to plan for the next season.
“Young workers aren’t going to escape Labor’s cash grab either. The proposed $3 million threshold isn’t indexed to inflation. Who knows what inflation will be over the next 30 or 40 years?
If this wasn’t simply a cash grab by Labor, the Government would do the honest thing and index the threshold to inflation,” Mr McCormack said.
Modeling by the Grattan Institute predicts around one in 10 workers retiring within 30 years will have super balances of around $3 million.