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Superannuation (Better Targeted Superannuation Concessions) Imposition

Current status

This bill did not become law and is no longer proceeding.

Policy area

Budget, tax & economy

What does this bill do?

People with more than $3 million in superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. across their Australian accounts would pay an extra 15% tax on the share of yearly superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. earnings tied to the amount above that threshold.

Why was it introduced?

Super tax breaks were still reaching very large balances, leaving concessions less targeted than intended. This bill adds an extra 15% tax on earnings linked to superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances above $3 million from 1 July 2025.

Broader context

Australia’s superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. system already taxed earnings concessionally to encourage retirement saving, but the government argued those tax breaks had become less well targeted because people with very large balances were still receiving them at scale. It introduced this bill in late 2023 to impose an extra 15 per cent tax on earnings linked to superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances above $3 million, the HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. passed it in October 2024, but after it was sent to the SenateThe upper house of Parliament, which had to pass the bill for it to become law. it lapsed when Parliament ended in July 2025.

Key criticism

The main criticism was that the bill taxes unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. above the $3 million superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. threshold, which critics said could create cash flow problems, trigger double taxation concerns and force sales of farms or other illiquid assets to pay tax on paper gains. That objection was raised by the Coalition and several crossbenchMPs who are not in the government or the main opposition, and whose votes can matter on contested bills. MPs, with some independents supporting the goal of tighter superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. concessions but refusing to back the bill unless issues like indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax. and asset treatment were fixed.

Who supported it?

Jones MPAn elected federal parliamentarian; the page uses this abbreviation when naming some speakers. introduced this bill. It was supported by Labor, some crossbenchMPs who are not in the government or the main opposition, and whose votes can matter on contested bills. members; opposed by Liberal Party, Nationals, Centre Alliance, some crossbenchMPs who are not in the government or the main opposition, and whose votes can matter on contested bills. members; and did not pass.

Introduced in House 30 Nov 2023
Passed House 09 Oct 2024
Failed in Senate 21 July 2025
Did not become law —

Did it become law?

No

The bill did not complete passage through Parliament.

Final passage

Did not pass

3 recorded votes before the bill stopped proceeding

Time before failure

599 days

From introduction to the final recorded step before the bill stopped proceeding

Official record

View on APH

Parliament of Australia bill page

Meaning

What does this bill do?

  1. People with more than $3 million in superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. across their Australian accounts would pay an extra 15% tax on the share of yearly superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. earnings tied to the amount above that threshold.

  2. The change would start on 1 July 2025 and only apply to people whose total superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balance is above $3 million.

  3. People charged this tax could pay it from money outside superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings., from one or more superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. accounts, or by mixing both payment methods.

  4. If someone with more than $3 million in superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. makes a loss on those balances in one year, that loss could be carried forward to cut the extra tax in later years.

  5. The government planned a review within two years of the measure starting to check how the new tax was working.

Show source excerpts
  1. The amendments reduce the tax concessions by imposing a tax of 15 per cent on certain earnings based on the percentage of the TSB exceeding the $3 million threshold. The tax is imposed directly on the individual and is separate from the tax arrangements of the superannuation fund or scheme.
    Superannuation (Better Targeted Superannuation Concessions) Imposition explanatory memorandum
  2. The policy will start on 1 July 2025 and apply from the 2025-26 income year onwards. Only individuals with TSBs more than $3 million will be subject to the new arrangements.
    Superannuation (Better Targeted Superannuation Concessions) Imposition explanatory memorandum
  3. Individuals can choose how to pay their Division 296 tax liability. Individuals liable to pay a Division 296 tax will have the option of paying their tax liability either by releasing amounts from one or more of their superannuation interests or by paying the liability from outside of the superannuation system or a combination of the two. This will be the case for all individuals irrespective of whether they have met a condition of release.
    Superannuation (Better Targeted Superannuation Concessions) Imposition explanatory memorandum
  4. Negative superannuation earnings from balances above $3 million will be carried forward and used to reduce the amount of superannuation earnings subject to Division 296 tax in future income years.
    Superannuation (Better Targeted Superannuation Concessions) Imposition explanatory memorandum
  5. A post-implementation review will be completed within two years of implementation of the measure, as per the requirements of the Australian Government’s Impact Analysis framework.
    Superannuation (Better Targeted Superannuation Concessions) Imposition explanatory memorandum

Context

Broader context for this bill

Australia’s superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. system already taxed earnings concessionally to encourage retirement saving, but the government argued those tax breaks had become less well targeted because people with very large balances were still receiving them at scale. It introduced this bill in late 2023 to impose an extra 15 per cent tax on earnings linked to superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances above $3 million, the HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. passed it in October 2024, but after it was sent to the SenateThe upper house of Parliament, which had to pass the bill for it to become law. it lapsed when Parliament ended in July 2025.

  1. 30 Nov 2023

    HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. introduction starts the bill’s push to retarget concessions

    The bill was introduced in the House of RepresentativesThe lower house of Parliament, where the bill was introduced and passed before going to the Senate., formally beginning the government’s attempt to tighten concessional tax treatment for the highest superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances.

    Parliamentary timeline ↗
  2. 30 Nov 2023

    Government says superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. tax breaks should be cut back for very large balances

    In the second readingThe main debate stage where MPs argue about whether they support the bill in principle. speech, the Assistant TreasurerThe minister who backed the bill in Parliament and explained the policy to the House. said the bill would add a 15 per cent tax on earnings tied to the share of a person’s superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. above $3 million to better target concessions.

    Hansard ↗
  3. 15 May 2024

    HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. debate centres on whether superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. concessions are for retirement or wealth accumulation

    Members debating the bill argued over whether very large balances should keep generous tax treatment, showing the core policy divide behind the measure.

    Hansard ↗
  4. 09 Oct 2024

    HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. passes the bill

    The HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. agreed to the bill at second and third reading, sending it on after accepting the government’s plan in principle.

    Parliamentary timeline ↗
  5. 10 Oct 2024

    Bill is introduced in the SenateThe upper house of Parliament, which had to pass the bill for it to become law.

    The measure was presented in the SenateThe upper house of Parliament, which had to pass the bill for it to become law., where it needed to pass to complete Parliament’s approval.

    Parliamentary timeline ↗
  6. 21 July 2025

    Bill lapses at the end of Parliament

    Because the SenateThe upper house of Parliament, which had to pass the bill for it to become law. had not finished the bill before Parliament ended, the proposed extra tax on earnings above the $3 million threshold did not become law.

    Parliamentary timeline ↗

Legislative route

How did it move through Parliament?

House Senate
Introduced 30 Nov 2023

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. opened 30 Nov 2023

A minister or sponsoring member moved the second readingThe main debate stage where MPs argue about whether they support the bill in principle., opening the main debate on the bill's purpose and principles.

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. moved

Economics Legislation Committee; Committee report (10/05/2024) review 07 Dec 2023

Referred to Committee (07/12/2023): SenateThe upper house of Parliament, which had to pass the bill for it to become law. Economics Legislation Committee; Committee report (10/05/2024)

Referred to committee

APH bill page notes
Second readingThe main debate stage where MPs argue about whether they support the bill in principle. debate 15 May 2024

The bill reached this recorded parliamentary step.

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. debate 16 May 2024

The bill reached this recorded parliamentary step.

HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. second readingThe main debate stage where MPs argue about whether they support the bill in principle. agreed Aye 75 No 59 09 Oct 2024

Recorded vote: 75 to 59.

The chamber agreed to the bill at second readingThe main debate stage where MPs argue about whether they support the bill in principle., meaning it accepted the bill in principle and allowed it to continue.

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. agreed to

HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. third reading agreed 09 Oct 2024

The chamber agreed to the bill at third reading, which completed passage through that chamber.

Third reading agreed to

Introduced 10 Oct 2024

The bill was formally presented to the chamber and read a first time, which starts its parliamentary journey.

Introduced and read a first time

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. opened 10 Oct 2024

A minister or sponsoring member moved the second readingThe main debate stage where MPs argue about whether they support the bill in principle., opening the main debate on the bill's purpose and principles.

Second readingThe main debate stage where MPs argue about whether they support the bill in principle. moved

Lapsed at end of Parliament 21 July 2025

The bill reached this recorded parliamentary step.

Key criticism

The main case against this bill

The main criticism was that the bill taxes unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. above the $3 million superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. threshold, which critics said could create cash flow problems, trigger double taxation concerns and force sales of farms or other illiquid assets to pay tax on paper gains. That objection was raised by the Coalition and several crossbenchMPs who are not in the government or the main opposition, and whose votes can matter on contested bills. MPs, with some independents supporting the goal of tighter superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. concessions but refusing to back the bill unless issues like indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax. and asset treatment were fixed.

Much of the criticism targeted the tax design and safeguards rather than the goal of curbing very large superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. tax breaks.

Taxing paper gains and illiquid assets

Critics argued the bill taxes unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., meaning people could owe extra tax before selling an asset. They said this would be especially hard for self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds holding farms, business premises or other illiquid assets, and could force asset sales to meet the bill.

Raised by Coalition MPs and several crossbench independents, including Kate Chaney, Kylea Tink and Zoe Daniel Source ↗

No indexation means the tax could spread over time

A repeated criticism was that the $3 million threshold is not indexed, so inflation and investment growth could pull more people into the higher tax over time. Opponents said that would make the measure less tightly targeted than advertised, especially for younger Australians.

Raised by Coalition MPs and independents including Helen Haines, Kate Chaney and Zoe Daniel Source ↗

Poor drafting and unintended consequences

Some MPs accepted the policy aim but said the bill's design was clumsy and undercooked. They warned it set a bad tax precedent, left important fairness problems unresolved and needed amendments or review before it could be supported.

Raised by Crossbench independents including Kylea Tink, Monique Ryan and Kate Chaney Source ↗

Further sources

parlinfo.aph.gov.au ↗

Votes

Recorded votes

How the bill itself passed

These were the main recorded votes on the bill.

Carried

House cleared second reading

Aye 75 No 59

Passed 75 to 59. Support came from Labor. Opposition came from Liberal Party, Nationals, and Centre Alliance. Minor-party and independent votes were split.

09 Oct 2024

Party Recorded votes Aye / No
Labor 65 / 0
Unknown 8 / 21
Independent 2 / 8
Liberal Party 0 / 17
Nationals 0 / 12
Centre Alliance 0 / 1
Carried

House cleared second reading

Aye 76 No 64

Passed 76 to 64. Support came from Labor. Opposition came from Liberal Party, Nationals, and Centre Alliance. Minor-party and independent votes were split.

16 May 2024

Party Recorded votes Aye / No
Labor 66 / 0
Unknown 9 / 22
Independent 1 / 8
Liberal Party 0 / 21
Nationals 0 / 12
Centre Alliance 0 / 1

Amendments at a glance

Recorded amendment and procedural votes grouped by chamber. Expand a vote to see the party breakdown.

House

Defeated

Criticise tax on unrealised gains

Aye 10 No 55

Defeated 10 to 55. Support came from Centre Alliance and minor parties and independents. Opposition came from Labor. Minor-party and independent votes were split.

16 May 2024

The HouseThe lower house of Parliament, where the bill was introduced and passed before going to the Senate. rejected an opposition-style second-reading amendment, so the bill advanced without the additional criticism being added to the motion.

Party Recorded votes Aye / No
Independent 8 / 0
Centre Alliance 1 / 0
Unknown 1 / 9
Labor 0 / 46

This list includes amendment votes, procedural votes and votes on the bill itself.

Parliamentary debate

Who spoke, and what they said

Start here — lead voices

Sponsor speech Supports

Jones

MP 30 Nov 2023

Mr Jones supports the bill, saying it would impose a 15 per cent tax on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. earnings linked to balances above $3 million.

Read in Hansard ↗
Lead opposing voice Opposes

Luke Howarth

Liberal Party • MP 15 May 2024

Howarth says the coalition will vote against the bill because it breaks the government's election promise not to touch superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and would unfairly tax retirement savings, including unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., especially for younger Australians, farmers and small business owners.

Read in Hansard ↗
Lead supporting voice Supports

Monique Ryan

Independent • MP 15 May 2024

Ryan supports the bill overall because she says it makes superannuation concessionsThe tax breaks that make super earnings and contributions taxed less heavily than normal income. more equitable and better targeted, but she criticises the separate rule taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. and urges the government to review that part urgently.

Read in Hansard ↗
Lead non-major voice Opposes

Allegra Spender

Independent • MP 16 May 2024

Spender says she will not support the bill in its current form.

Read in Hansard ↗

All speeches by bloc

Labor

2 speakers · 2 support

  1. Graham Perrett Graham Perrett supports the bill and says it makes superannuation concessionsThe tax breaks that make super earnings and contributions taxed less heavily than normal income. fairer and more sustainable by limiting the tax break for balances above $3 million.
    “I speak in support of the raft of reforms included in the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023 brought by the honourable member for Whitlam.”

    Australian Labor Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  2. Jenny McAllister McAllister supports the bill, which imposes a 15 per cent tax on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. earnings linked to balances above $3 million.
    “This Bill inserts a new Division 296 in the Income Tax Assessment Act 1997, which imposes a tax rate of 15 per cent for superannuation earnings corresponding to the percentage of an individual's superannuation balance that exceeds $3 million for an income year.”

    Australian Labor Party • Senator • 10 Oct 2024

    Read the full speech in Hansard ↗

Coalition

14 speakers · 15 contributions · 14 oppose

  1. Luke Howarth ★ 2 contributions Howarth says the coalition will vote against the bill because it breaks the government's election promise not to touch superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and would unfairly tax retirement savings, including unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., especially for younger Australians, farmers and small business owners.

    Hansard records 2 separate contributions by Luke Howarth on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Liberal Party • MP • 15 May 2024

    Howarth says the coalition will vote against the bill because it breaks the government's election promise not to touch superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and would unfairly tax retirement savings, including unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., especially for younger Australians, farmers and small business owners.

    “There is no argument about the importance of the stability of our retirement system and the importance that it has in ensuring that future Australian governments don't have increasing levels of welfare. We want every Australian to be able to have the support they need and to be able to fund the decent retirement that they need. The stability of that system is being undermined by the Albanese Labor government, and the trust of governments is undermined when prime ministers and politicians break election promises, and that is what this is about. The Prime Minister said one thing before the election, and he's doing a very different thing now that he's in government. It's not good enough, and I'll leave it at that. We'll be voting against the bill.”
    Read this contribution in Hansard ↗

    Second reading speech Liberal Party • MP • 15 May 2024

    Howarth says the opposition will not support the bill as drafted because it breaks an election promise and imposes a new tax on Australians' retirement savings, including unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet.. He says the government should be held to account and that any changes need amendments to protect affected superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. holders.

    “The big issue here is that this is a broken promise. It's a doubling of taxation on some Australians' retirement savings. It is a tax on hardworking Australians. Labor's division 296 tax is an unindexed wealth tax affecting countless Australians. It is a tax on unrealised capital gains, which is completely unheard of. This has never been done before. For those lucky enough to have a superannuation balance of a certain amount, they will be hit with a tax on unrealised capital gains. For everyone else, they face unindexed annual tax on unrealised capital gains. It is a tax on aspiration. Superannuation belongs to Australians. It is not the Albanese government's money, it is not the Prime Minister's money and it is certainly not the Treasurer's money. Superannuation is Australians' money, and the Albanese Labor government are not respecting that—that it belongs to Australians, not the government.”
    Read this contribution in Hansard ↗
  2. Michael McCormack McCormack opposes the bill and says the coalition will not support it because it breaks Labor's promise on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings., raises taxes on unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., and unfairly hits farmers and regional Australians.
    “The coalition is not supporting this. Why would we? Why would we support yet another tax? Why would we support yet another cash grab? Why would we support something that is going to hurt our farmers such that they may have to sell part or all of their land simply to pay the unrealised gain, the tax that Labor is going to impose on them?”

    National Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  3. Garth Hamilton Hamilton opposes the bill, arguing that taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. is unfair and will hit family farms and self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds hardest, especially where land values rise but cash income does not.
    “I want this point to be on record because I want to be able to say: 'You guys turned your back on these people. You turned your back on them, every single one of you. There was a chance you had to change these ridiculous laws, and you didn't.' This is completely on the government. They've ignored the experts.”

    Liberal National Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  4. Aaron Violi Violi opposes the bill, saying Labor broke its promise to leave superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. alone and has undermined confidence by taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. without indexing the threshold.
    “Let's be clear. Let's be very clear. This is a broken promise by this Prime Minister, by this Treasurer and by this government. Australians are sick and tired of the Albanese Labor government continuing to tell Australians one thing and then do another.”

    Liberal Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  5. Sam Birrell Sam Birrell opposes the bill, saying it is a new and unfair tax that breaks Labor's promise on superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and will hit family farms and young Australians.
    “As usual, there are some consequential changes that are positive. The Commissioner of the Australian Charities and Not-for-profits Commission will be able to make disclosures about new and ongoing investigations where the disclosure would prevent or minimise the risk of significant harm. There's always something good in a bad bill, so people have got something to talk about—that's what I've noticed in my new parliamentary career. But it doesn't matter how many pretty ribbons you use to tie this up. This package has at its core a broken promise, because they said they weren't going to touch super, and a new and unfair tax. It's an attack on agriculture and an attack on the aspirations of young Australians, and I won't be supporting this bill.”

    National Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  6. Andrew Willcox Willcox opposes the bill and says the Coalition will vote against it because it is an unfair tax grab that hits farmers, graziers and self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds by taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. and removing confidence in retirement saving.
    “This is bad legislation. It's bad for farmers. It's bad for the graziers. For young people, it instils no confidence. I don't think young people have got confidence in this government anyway, and rightly so. That lack of confidence is very well founded. But please get behind this. Make sure you vote against it. Come on, fellas. You can do it. Vote against it. Stand up to your party. That's it.”

    Liberal National Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  7. Melissa Price Melissa Price opposes the bill and says the opposition will not support it because it raises superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. taxes, hits younger Australians and self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds, and does nothing to ease cost-of-living pressures.
    “To conclude, I will not be supporting these bills—how could you possibly? They do nothing to combat the cost of living, which is what the government should be focused on, and will disproportionately impact younger Australians—as if they are not doing it tough enough. They represent a terrible betrayal of trust and only serve to fuel Labor's unhealthy spending addiction. Things never change. Remember, when Labor run out of money they come after yours.”

    Liberal Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  8. Bert Van Manen Van Manen says the coalition will oppose the bill because it imposes a punitive new tax on people with superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances above $3 million, especially on unrealised capital gains.
    “As I said earlier, there will be a disproportionate effect from this. I can go out and invest in a listed property trust or any other listed asset that has illiquid assets in it, and the managers of that fund don't have this burden. That is a complete and utter disgrace, and the government should hang its head in shame. I am proud that as a coalition we are opposing this bill.”

    Liberal Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  9. Nola Marino Nola Marino opposes the bill, saying Labor is breaking its promise on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and introducing a tax on unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. that will hit young workers, small business owners, farmers and self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds.
    “This attacks aspiration and discourages people from taking more responsibility to fund their own retirement. We know that the big super funds and therefore Labor want to get rid of our self-managed super funds. Retirees and superannuants will now face basically a doubling of tax on the money they haven't yet earned or received. It will hit small business owners, farmers and self-managed super funds the hardest, but clearly that was the government's intent. Taxing unrealised capital gains means Australians will be taxed on money they haven't actually made or received, and it actually doubles the taxation on an asset that they haven't even sold. It's really hard to explain this in a way that makes any sense. It doesn't make sense. The tax will be applied year on year, on a recurring basis, on that same asset every year.”

    Liberal Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  10. Jenny Ware Jenny Ware opposes the bill because she says it breaks an election promise, is unfair because the $3 million threshold is not indexed, and would tax unrealised capital gains.
    “I rise to speak on the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023. At the outset, I will be opposing these bills. The Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 has the stated intention to reduce the tax concessions on total superannuation balances which exceed $3 million. In effect, this means that instead of paying 15 per cent, which is the existing rate on balances over $3 million, the tax rate will be doubled. There are three main reasons why I say that this bill should be opposed. Firstly, it represents a broken election promise—yet another broken election promise. Secondly, the $3 million threshold figure is not indexed. Thirdly, and lastly, it also taxes unrealised capital gains.”

    Liberal Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  11. Terry Young Terry Young opposes the bill, saying it is an unfair new tax on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. that hurts aspiration, small business and jobs.
    “Research has revealed that, when it comes to super, Australians trust themselves first, super funds second and government last. We must empower Australians to make decisions about their own financial future first, not governments. We need economic policies that support small-business aspiration and entrepreneurship; that reward work, not more welfare; that contain growth in government spending and government overreach; that deliver an incentive based tax system that returns bracket creep and supports lower, fairer taxes; and that exemplify the coalition's long-held mantra of allowing Australians to keep more of what they earn—which I note has been stolen in the last six months by the Labor party, which, of course, is the highest form of flattery. Australians need a government and policies that support aspiration and back business to create jobs, and this bill and this Labor government do the opposite. I will not be supporting this bill.”

    Liberal National Party • MP • 15 May 2024

    Read the full speech in Hansard ↗
  12. Keith Wolahan Wolahan says the opposition will not support the bill because it breaks promises on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings., lacks indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax., and will eventually hit far more than the government claims.
    “The key issue with this bill, in addition to the broken promise and taxing on unrealised capital gains, is the lack of indexing. Three million dollars may seem like a lot of money now, but without indexing that will affect much more than 80,000 people.”

    Liberal Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  13. David Gillespie Gillespie says the Nationals will not support the bill, arguing it would tax unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., hit family businesses and long-term superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. savers, and undermine franking credits.
    “We need to realise that when bad legislation comes before this place you don't try to short-circuit the process. At least they're not guillotining the debate on this one as they did on the last bill. But this is a bad bill. It can't be supported. If they were to amend some of these rules then yes, we would consider them, if it was for the good of the economy. It's just a question of a tax-hungry government who will tax you more for longer, and you'll have less of your money if you vote for this bill.”

    National Party • MP • 16 May 2024

    Read the full speech in Hansard ↗
  14. Keith Pitt Keith Pitt opposes the bill, arguing that taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. will force self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. fund holders to sell assets and will unfairly punish Australians who followed the law when they made their investments.
    “I oppose this bill. It is abhorrent. It is a ridiculous decision. It should be absolutely panned across the country. Who are they attacking? They are attacking hardworking Australians that are trying to get ahead and are actually investing in assets that are of benefit to the nation, including residential housing. And guess what we need right now? We need more rental properties, more availability and less immigration, and this Labor government has messed this up completely.”

    National Party • MP • 16 May 2024

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Greens

1 speaker · 1 mixed

  1. Max Chandler-Mather Chandler-Mather says the Greens do not see this bill as enough to fix unfair superannuation concessionsThe tax breaks that make super earnings and contributions taxed less heavily than normal income., and argues it will only pass if the government also ends tax breaks for property investors.
    “Three independent reviews to government have said end borrowing by self-managed super funds. It shouldn't have been ignored for a decade. The proposed taxation of unrealised capital gains in this legislation has brought the issue to the surface. Taken together, the combination of accrual taxation and a 156 per cent increase in limited recourse borrowing by self-managed super funds since the Murray review presents a very real risk to the individual super funds as well as to the financial stability of the superannuation system as a whole. If the government wants this timid legislation to pass, it is going to have to end super tax breaks for property investors.”

    Australian Greens • MP • 16 May 2024

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Minor parties and independents

7 speakers · 9 contributions · 1 support · 3 oppose · 3 mixed

  1. Allegra Spender ★ 2 contributions Spender says she will not support the bill in its current form.

    Hansard records 2 separate contributions by Allegra Spender on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Independent • MP • 15 May 2024

    Zoe Daniel says she supports the core principle of the bill, but will not support it because the government has refused to address indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax. and the taxation of unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet.. She backs the North Sydney amendments and argues the current form of the bill sets a bad precedent for superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. tax policy.

    “I support the second reading amendment proposed by the member for North Sydney on indexation, as well as her amendment on unrealised gains. I'm concerned that the government has not listened to consultation on these matters, appearing to have made rigid decisions about this legislation, even before consulting. So, on balance, while I do support the core principle of the bill, I am sufficiently concerned about these outstanding issues, particularly the precedent set by taxing unrealised gains, that I will not support it.”
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    Second reading speech Independent • MP • 16 May 2024

    Spender says she will not support the bill in its current form. She backs the goal of taxing very large superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. balances more fairly, but objects to the unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. tax, the lack of a clawback, no indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax., and the uncertainty around final salary pensions.

    “That is why I will not support this bill in its current form, though in principle I agree with what the government intends: trying to shift the tax burden away from young working Australians, which is where we should all be trying to shift the tax burden from.”
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  2. Russell Broadbent Broadbent opposes the bill, arguing it breaks an election promise not to change superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. and will hurt farmers and self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds.
    “This bill, like other policy themes under the Labor government, discourages farmers from doing their honourable work on our behalf. Worse, it disproportionately poses a serious threat to the next generation of farmers, which I'm sure the member for Forrest will bring up too.”

    Independent • MP • 15 May 2024

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  3. Monique Ryan ★ Ryan supports the bill overall because she says it makes superannuation concessionsThe tax breaks that make super earnings and contributions taxed less heavily than normal income. more equitable and better targeted, but she criticises the separate rule taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet. and urges the government to review that part urgently.
    “Ultimately, these bills do take important steps towards making the superannuation system more equitable and more aligned with the object of superannuation—that is, a mechanism for retirement savings and not primarily a wealth creation strategy. The fact is that most of the value of these tax concessions does flow to those who have above median incomes. Unaddressed, they will increase over time. That inequity does warrant urgent government attention. Better targeting of tax concessions, now, is a sensible way forward. It is, however, frustrating that this worthwhile move is conflated with a difficult and messy side issue: the taxing of unrealised gains. I call on the government to review this proposal as a matter of urgency. I commend the bill to the House.”

    Independent • MP • 15 May 2024

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  4. Kate Chaney Chaney says she supports capping superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. tax breaks, but she will not support the bill in its current form unless her concerns are fixed.
    “I have no problem with putting a cap on superannuation tax breaks above a certain level, but it has to be practical and fair. I'm disappointed that these issues have not been resolved through the consultation process, so as a result I will be supporting appropriate amendments, and, if they're not accepted, I will not be supporting this bill.”

    Independent • MP • 15 May 2024

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  5. Helen Haines Haines says she supports the aim of the bill, but will not back it in its current form because she wants indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax. of the $3 million threshold and an exemption for agricultural land in self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds.
    “The two problems I've identified can be addressed, first, by indexing the $3 million threshold and, second, by excluding agricultural land assets from the calculation of total superannuation balance using the Australian Taxation Office's existing definition of 'primary production asset'. These, I believe, are reasonable and simple amendments that would not take away from the important intent of the bill: to make sure our superannuation system fulfils its objective of providing for people in their retirement. I'm disappointed that the government has failed to take on these recommendations, but I'm hopeful that they will in the Senate. These are reasonable amendments that are being put before the House. I think it is the role of parliament, after all, to debate, to improve and to pass good law that benefits all Australians. So until this bill is improved, I won't be supporting it in the House of Representatives, and I encourage my colleagues in the Senate to make the changes necessary so that, ultimately, I can support it.”

    Independent • MP • 15 May 2024

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  6. Kylea Tink 2 contributions Tink says she cannot support the bill in its current form and has moved amendments because she believes the reform could work only if the major flaws are fixed.

    Hansard records 2 separate contributions by Kylea Tink on this bill. They are grouped here so the speaker is listed once.

    Second reading speech Independent • MP • 15 May 2024

    Tink says she cannot support the bill in its current form and has moved amendments because she believes the reform could work only if the major flaws are fixed. Her main objections are the lack of indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax., taxing unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet., and the burden this would place on people with illiquid superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. assets.

    “In closing, I'd like to move the amendments as circulated in my name. This reform can and could work, but it will not work in its current form.”
    Read this contribution in Hansard ↗

    Second reading speech Independent • MP • 15 May 2024

    Tink says her community supports the goal of the bill and she is generally comfortable with winding back generous superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. tax breaks, but she argues the drafting is inelegant and poorly conceived. She says the government has refused constructive changes and that the bill risks unintended consequences, sets a bad tax precedent, and threatens self-managed superThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. funds.

    “With all of that said, I recognise that this legislation proposes to rein back generous tax breaks for super balances that are beyond what is currently perceived as necessary to fund a comfortable retirement, and generally I'm comfortable with that idea, even if in its execution it's inelegant. However, both I and my community believe the mechanics proposed in this bill are poorly conceived and will result in unintended consequences and that the government's complete refusal to enter into constructive discussions about how this legislation could better work only adds weight to the arguments that this legislation is about much more than large balances.”
    Read this contribution in Hansard ↗
  7. Rebekha Sharkie Sharkie says Centre Alliance cannot back the bill in its current form because it lacks indexationA rule that would lift the $3 million threshold over time so inflation does not drag more people into the tax., a transition period and protection against taxation of unrealised gainsPaper profits on an asset that has gone up in value but has not been sold yet..
    “My other concern with this piece of legislation is that there is no transition period. Those who are already retired may not be able to restructure their superannuation arrangements. As I said previously, businesses and farmers will I think be disproportionately negatively affected by this legislation. I hope the government addresses particularly the indexation part of this bill. What might seem like a bit of a tax on very wealthy people now will perhaps in decades to come not be considered so. It's very difficult for governments to walk away from tax revenue streams. So I think if we're going to do this piece of legislation we need to make it fairer. I think we need to have indexation and I think we need to address the issue with respect to unrealised gains. Thank you.”

    Centre Alliance • MP • 16 May 2024

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Unknown

1 speaker · 1 support

  1. Jones ★ Mr Jones supports the bill, saying it would impose a 15 per cent tax on superannuationThe retirement savings system that lets Australians put money aside during working life, with special tax treatment on the earnings. earnings linked to balances above $3 million.
    “This bill inserts a new division 296 in the Income Tax Assessment Act 1997, which imposes a tax rate of 15 per cent for superannuation earnings corresponding to the percentage of an individual's superannuation balance that exceeds $3 million for an income year.”

    MP • 30 Nov 2023

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