Jim Chalmers has been forced into a humiliating backflip on his proposal to tax super unrealised gains, as his Prime Minister jetted off overseas leaving him holding the bag.
This is a humiliating moment for the Treasurer who spent two years defending the indefensible—a policy so unfair it united people from all walks of life.
This is a victory for the Coalition of Commonsense over a tax-hungry Labor Government that simply cannot stop its spending spree.
The Treasurer has spent years assuring Australians that there was no other way than to tax unrealised gains without indexation, but he has finally been forced to admit that he was wrong.
Taxing theoretical profits was always a reckless idea that would have taken from Australians’ life savings to feed a rapidly deteriorating budget bottom line.
Now the Treasurer is left with a $4.2-billion budget black hole over the forward estimates and is no doubt preparing new taxes on everyday Australians to fill it.
After two years of chaos and spin, Labor has cobbled together a new model with multiple thresholds and other moving parts. The fine print will no doubt contain more unintended consequences for hardworking Australians.
No amount of spin from the Treasurer hides the fact that this is a full knock-down rebuild of an utterly failed policy. Australians deserve stability and predictability in superannuation, not constant changes driven by a government in desperate search of higher taxes.
Dan Tehan, Member for Wannon, said, ‘This is welcome news, as farmers, families and small businesses across regional Australia simply cannot keep absorbing new taxes every time Labor runs out of money.
‘The Treasurer’s backflip is proof that this government’s priorities are completely wrong. Instead of helping people get ahead, Labor keeps looking for new ways to take more out of their pockets, whether it’s through super, energy bills or red tape.
‘Across Wannon, people continue to struggle with rising costs and higher interest rates. They did not need another complex tax regime hanging over their heads. What they want is to be able to plan for the future knowing the rules won’t keep changing.
‘The Coalition will always fight for a fair and stable super system that rewards hard work and encourages Australians to save for their retirement, not one that treats their savings as a government slush fund.’
Spending under Labor is growing more than four times faster than the economy and has reached its highest level outside a recession since 1986. This highlights Labor’s addiction to big government and why they can’t be trusted to manage people’s retirement savings or the economy.
The Coalition’s principles remain clear: super should be about helping Australians build a nest egg, not a blank cheque for the government to fund its spending spree.
ENDS
Contact: Sandie Gustus M | 0408 564 232 E | sandie.gustus@aph.gov.au
