A Liberal senator has warned that Labor’s planned taxes on high superannuation balances could eventually impact over 500,000 Australians—a number impacting six times more individuals than what the government has claimed.
Prime Minister Anthony Albanese this week unveiled his plan to double taxes on super accounts with more than $3 million (US$2.03 million) from 15 percent to 30 percent, with the changes to come into effect from mid-2025, around the time when Australia has another federal election.
However, Treasurer Jim Chalmers has said he does not plan to index the $3 million cap.
Labor described it as a “modest” and necessary change to support the government’s spending, which is estimated to increase Australia’s debt to $36.9 billion (US$24.97 billion), or 1.5 percent of the nation’s GDP in 2022-23. The tax proposal is forecast to raise $2 billion to fill in some of the budget holes….