Farmers will be big losers from the federal government’s proposed introduction of a $3 million cap on super balances, above which earnings will be taxed at a higher rate.

According to accounting and consulting firm RSM Australia, which boasts one of Australia’s biggest rural practices, this is not only sparking conversations among, particularly younger, farmers about taking their land out of their self-managed super funds, but further undermining their faith in the superannuation system.