Farmers to fight tax on $3M super funds

Farmers say they will fight the government’s plan to hike the tax rate on $3m-plus super funds, arguing it ‘significantly impacts’ the handing down of family farms. 

A farmers’ association say they will oppose the government’s tax grab on ‘richer retirees’ arguing it will “significantly impact” the handing down of family-owned farms.

Bowen Gumlu Growers Association CEO Ry Collins said the group would fight any ruling that increased the tax rate from 15 to 30 per cent for earnings on super balances above $3 million from 2025.

The proposed changes would initially affect about 86,000 super investors across Australia.

“We’d be highly concerned if the new legislation applies more broadly than what is tied up in just ‘super funds’ and as reported by the government only effects less than 5 per cent of the population,” Mr Collins said.

“The nature of producer businesses means their retirement or family home is often tied up in the business and other structures such as trusts or self-managed super funds and if looked at cumulatively, (it) would exceed the value of $3 million for many producers.

Bowen Gumlu Growers Association CEO Ry Collins says farmers will fight the tax hike. Picture: Fiona Kroll

“We’d oppose any proposed legislation that looks to increase tax on this or these assets and imagine it would have (a) significant impact on grower businesses, retirement or succession planning, and the ability for family farming businesses to continue on between generations.”

Dawson MP Andrew Willcox blasted the superannuation tax rise as unfair and warned “the small end of town” would suffer because of farmers good faith decisions to put their farms’ and business premises into their super funds.

The Government’s decided to double the tax rate from 15 to 30 per cent for earnings in $3 million-plus super funds, which specifically targets farmers.

“When they’ve got policies as bad as this one, policies which hurt our hardworking men and women, they run and hide in the shadows,” Mr Willcox said.

The MP asked Assistant Treasurer Stephen Jones whether the changes to superannuation would be just “another unfair new tax on family farms and family businesses” during Question Time in parliament.

Mr Jones was unable to answer the question directly, but he did say the changes were proposed to “plug the $1 trillion worth of debt” that the Coalition “mob” had left Australian with.

Dawson MP Andrew Willcox blasted the unfair tax on farmers. Picture: Contributed

Nationals leader David Littleproud also weighed in on the increased tax, calling it another broken promise.

“This is the start of a dangerous slippery slope into more broken promises and higher taxes,” the Maranoa MP said.

“It is deceitful and just goes to show, when Labor runs out of money, they always come after yours.

“It begs the question – what comes next?”

Nationals leader and Maranoa MP David Littleproud called the tax “another broken promise”. Picture: Supplied

Mr Littleproud said many families had previously set up SMSFs for their future retirement and savings, unaware that Labor would come for their assets with more taxes.

“Labor now wants to tax hard working families year after year, on paper gains caused by nothing more than volatile commercial property markets,” he said.

“Labor is misleading regional, rural and remote Australia, breaking its promise before the election that it wouldn’t touch superannuation.

“Not only is Labor now coming for your super, Labor is also coming for the increased value of assets in a SMSF.

“This is without warning, without telling voters and without SMSF holders being aware.

“Sadly, voters will now have to wait and see what else Labor has in store, on its slippery slope of tax trickery and lies.”