3 February 2025
Chartered Accountants ANZ (CA ANZ) is calling on the Federal Government to not proceed with the Superannuation (Better Targeted Superannuation Concessions) Bill 2023 because of major design flaws.
The Bill has been listed for debate in the Senate when Federal Parliament resumes this week.
CA ANZ has used its 2025-2026 Federal Budget Submission to again outline its opposition to this policy that will see individuals with more than $3 million in total superannuation assets face an additional 15 per cent tax.
“CA ANZ is concerned about the current design of this proposed legislation, including the lack of indexation of the $3 million cap, the taxation of unrealised capital gains and the carried forward allowance of capital losses,” CA ANZ Chief Executive Officer Ainslie van Onselen said.
This legislation seeks to address the problem of current high super balances for a small cohort of individuals who took advantage of past legitimate superannuation and tax policies. Most of these individuals are elderly and their super investments will leave the system over the next 10 years.
“There are major design flaws with this proposed legislation. We also believe this tax will be very expensive for individuals, superannuation funds, tax agents, financial advisers and the ATO to administer and will raise little net revenue when all these costs are considered,” Ms van Onselen said.
In the lead up to the election, CA ANZ is also calling on the major parties to commit to tax reforms, better support for Australia’s 2.5 million small businesses and for its members to be allowed to give Australians the financial advice they need for a dignified retirement.
“With the election months if not weeks away, CA ANZ is hoping to see sensible policies from both major parties that put Australians first and think about long-term reform, instead of sugar hits and band-aids,” Ms van Onselen said.
“Our small business sector represents 97 per cent of the country’s businesses, so it’s in everyone’s best interests to ensure they can operate efficiently and without unnecessary red tape.
“We recommend the Federal Government makes the instant asset tax write off threshold permanent. We also want to see a grant for small businesses to access financial health check services and tax carry back rules made permanent.
“These are simple but effective measures that will lighten the burden on our vital small business sector.”
CA ANZ believes the upcoming Budget and election are an opportunity to overhaul the country’s tax system and move away from an overreliance on personal income tax.
“Australia has relied too heavily on personal income tax to prop up our balance sheet, and that is taking a toll on hard working Australians who are just trying to get ahead in a difficult economy,” Ms van Onselen said.
“As Australia continues to grapple with economic and geopolitical challenges, we need a resilient and sustainable economy to withstand future headwinds.
“Budgets are about decisions, and this is the Government’s opportunity to make the right decisions that bolster our economy and position us for success.”
CA ANZ Chief Economist Richard Holden says many of the policy actions outlined in the 2025-2026 Federal Budget Submission speak to how Australia can rise to its new productivity challenge in the age of labour scarcity.
“We need labour-market flexibility, regulatory transparency, a competitive tax system, and resilient energy systems and supply chains. CA ANZ’s policy actions are both necessary and long overdue. They are required for Australia to be a great place for business to invest and locate. And they are crucial to the economic and social wellbeing of all Australians,” Richard Holden said.
“CA ANZ looks forward to working with the Government on these important recommendations to improve Australia’s economic position and move our economy forward,” Ms van Onselen said.
ENDS
For more information contact:
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AUSTRALIA Gillian Bowen, Public Affairs Manager Australia M +61 411 485 421
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About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents nearly 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.