The Australian Federal Government has revised its proposed superannuation tax following feedback from the agricultural sector, in a move welcomed by farming families in New South Wales.
Federal Treasurer Jim Chalmers announced that the new plan will remove the proposed tax on unrealised gains. The measure will now include indexation, with superannuation balances between US$1.9 million (A$3 million) and US$6.3 million (A$10 million) to be taxed at 30%, while balances above US$6.3 million will be taxed at 40%.
NSW Farmers' President Xavier Martin said the decision follows extensive lobbying by the state's farming organisation, which had opposed the original proposal.
"The government wanted to tax money people hadn't earned, because they've supposedly made money on assets they hadn't sold, and it's good to see they've finally seen sense on this super tax," Martin said.
"Thousands of Aussie farming families have their businesses or farm assets in self-managed superannuation funds, and this tax would have crippled them if it had gone ahead unchanged.
"Farmers now have a shot at a brighter future, where they can continue to feed the world and use superannuation structures to support succession planning, without senseless taxes to cripple them," he added.
Martin said the sector appreciated the government's reconsideration. "It's a good day to be a farmer, and we'd like to thank our Treasurer and those on all sides of Parliament who drove these changes on the nation's behalf. They've done the right thing by the people who feed and clothe our wonderful country," he said.
For more information:
Eliza Fessey
NSW Farmers
Tel: +61 (0) 427 411 220
Email: [email protected]
www.nswfarmers.org.au
