Chartered Accountants Australia and New Zealand (CA ANZ) has voiced strong opposition to the Superannuation Bill 2023, urging the Australian Federal Government to reconsider its stance.
As the Bill is scheduled for debate in the Senate with the resumption of Federal Parliament this week, CA ANZ highlights what it deems major design flaws in the legislation.
The contentious policy would impose an additional 15% tax on individuals with superannuation assets exceeding A$3m ($1.9m).
The professional body has reiterated its disapproval in its 2025-2026 Federal Budget Submission, stressing the adverse impact on a specific group of elderly individuals.
According to the body, these individuals are likely to withdraw their super investments from the system within the next decade.
Amidst the pre-election debate, CA ANZ is not only challenging this policy but also advocating for comprehensive tax reforms.
It calls for enhanced support for the 2.5 million small businesses in Australia and seeks to empower its members to provide the necessary financial advice for Australians to secure a dignified retirement.
CA ANZ predicts that the upcoming budget and election as pivotal moments to reform the nation’s tax framework.
CA ANZ CEO Ainslie van Onselen said: “CA ANZ is concerned about the current design of this proposed legislation, including the lack of indexation of the $3m cap, the taxation of unrealised capital gains and the carried forward allowance of capital losses.
“There are major design flaws with this proposed legislation. We also believe this tax will be very expensive for individuals, superannuation funds, tax agents, financial advisers and the ATO to administer and will raise little net revenue when all these costs are considered.
“With the election months if not weeks away, CA ANZ is hoping to see sensible policies from both major parties that put Australians first and think about long-term reform, instead of sugar hits and band-aids.”
