Comments attributable to NFF President David Jochinke
We are encouraged by comments in Senate Estimates yesterday that the Treasury Department is considering concerns raised about the Federal Government's proposed 'Super Tax'.
In yesterday's hearing, the Government also confirmed the Prime Minister's office is looking at the legislation and considering stakeholder feedback to the Treasury Laws Amendment (Better Targeted Superannuation Concessions Bill) 2023.
We further note that officials took on notice to answer if they had explicitly modelled the number of agricultural businesses that would be impacted.
The NFF has consistently raised concerns about the impact of this Bill, in particular the taxing of unrealised gains on assets held in Self-Managed Superannuation Funds (SMSFs), given thousands of family farms hold assets in their SMSFs.
Modelling, including from the University of Adelaide, has shown more than 3,500 SMSFs holding farming land would be impacted on day one of this tax being implemented, and this number will only grow.
Another 14,000, who are currently below the $3 million superannuation threshold, face the same fate if property values grow given the threshold is not currently indexed.
Farmers are not alone, with an estimated 13,000 small business owners with real property assets, such as shopfronts, restaurants and warehouses, also to be immediately impacted.
The NFF has been advocating on this issue for nearly two years, and has been joined by a coalition of small business, accounting and superannuation bodies united in their concern regarding the taxation of unrealised capital gains.
We urge the Government to proactively consider changes they can make to the policy to avoid impacts on farmers and small businesses across the country.
