Deputy Prime Minister Richard Marles struggled to provide clear answers regarding a new superannuation tax hike on the Today Show. Labor shared plans for a super crackdown earlier in the week, stating that those with more than $3 million in superannuation would no longer receive tax concessions.
The plan includes doubling the tax rate for contributions to 30%, up from 15%, for 80,000 Australians and is expected to come into effect on July 1, 2025.
During the show, Karl Stefanovic asked Marles if Australians’ shares would be taxed, but the Deputy PM failed to give a direct response, causing Stefanovic to tell him it was ‘okay’ if he didn’t know the answer.
Stefanovic suggested Marles could provide a better explanation at a later date, like Jim Chalmers, the Federal Treasurer.
Marles highlighted that the changes would only affect those with $3 million in superannuation, which is 0.5% of Australians, and that it was a ‘modest’ change.
The proposed change would save the federal budget approximately $2 billion annually, and the other 99.5% of Australians would continue to receive the same tax breaks.
The change would not come into effect until after the next election, due by mid-2025. Opposition Leader Peter Dutton accused Labor of making up the plan on the run, saying that they wanted to tax unrealized capital gains, which he believed was unbelievable.
Prime Minister Anthony Albanese argued that the plan did not change the fundamentals of the superannuation system and was an ‘important reform.’ He pointed out that 17 Australians have more than $100 million in their retirement savings accounts, with one person having more than $400 million in super.
Albanese believed that these levels were not about actual retirement incomes, which is what superannuation is for, and that most Australians would agree that this is not what superannuation is for. Two-thirds of superannuation tax concessions go to the top 20% of income earners, and less than 1% of people have super savings of more than $3 million.
The 15% concessional tax rate for super contributions costs the Budget $53 billion annually, and the crackdown on those with more than $3 million in super is expected to save the treasury $2 billion.
»Richard Marles struggles to provide clear answers regarding new superannuation tax hike«
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