ANZ CEO Shayne Elliott urges more consultation on superannuation tax changes

Shayne Elliott questions whether the Albanese government has gauged enough opinions around superannuation changes, and wants the nation’s complex tax system simplified.

ANZ chief Shayne Elliott is questioning whether the Albanese government has gauged enough opinions ahead of moving forward with divisive superannuation tax changes, as he called for simplification of the nation’s complex tax system.

The government last week outlined a plan to tax superannuation income on balances of more than $3m at 30 per cent, compared to the 15 per cent rate that currently exists for amounts of more than $1.7m. The system is uncapped for the 15 per cent concessional tax treatment, with retirement balances below $1.7m not attracting any tax.

The proposed changes are proving controversial, including that the plans tax unrealised gains on investments held within superannuation.

Mr Elliott said while he could empathise with both sides of the argument, the negligible consultation around the changes increased the risk of unintended consequences.

“They’ve (the government) got to balance the books at some point and that requires hard choices,” he added.

“I see the idea that it (concessional tax rate) wasn’t designed for people to have $50m sitting in their super account … At the least the government is willing to take on some hard issues.

“You can’t be set and forget on these policies. I don’t know that there was the right level of consultation around this.”

Mr Elliott noted the onus was on government to talk with industry and interested parties to work through any potential unintended consequences that could stem from the changes.

ANZ – like the bulk of its big bank peers – sold its superannuation business as it retreated to its core areas of banking.

Chief executive Shayne Elliott at ANZ’s Sydney headquarters. Picture: NCA NewsWire / Simon Bullard

Of the big four, Commonwealth Bank is the only large lender that remains active in the industry, via a minority stake in Colonial First State.

On Friday, National Australia Bank chief Ross McEwan threw his support behind the government’s flagged tax superannuation changes for balances of more than $3m.

“$3m is a lot of money to have in a super fund,” he said. “I’m sure I’ll put myself out there and people will say ‘he should never have said that’, but I think $3m is a lot of money and a 4 per cent return on that … I’m pretty sure after tax somebody could live on $120,000.

“It’s not a bad sum of money.”

Colonial’s superannuation chief Kelly Power said given challenges women in particular faced in saving for an “adequate retirement”, the government should consider reinvesting revenue raised from any new tax proposal. She noted that could happen in the payment of the super guarantee as part of the government’s paid parental leave scheme. “In considering any tax changes, governments must be especially mindful that they can have disproportionate impacts on confidence in the system, and often those impacts extend well beyond the directly affected individuals,” Ms Power said.

“We believe indexation is an important principle which should be observed given the long-term nature of the superannuation system. Indexation ensures the system remains equitable.”

Under the government’s flagged superannuation tax changes, the 30 per cent tax rate will not be indexed.

Mr Elliott said taxes more broadly had the potential to “distort incentives” and create unintended consequences, including those proposed to be levied on the $3m-plus super balances.

“With a $3m cap of course it will change people’s behaviour … all these taxes and structures and things in Australia – there is a whole industry out there of people not avoiding tax … but maximising their opportunities,” he added. “What we know is that taxes of any shape and size distort things and sometimes they are designed to do that and sometimes they’re not.”

Mr Elliott labelled Australia’s tax system “extraordinarily complicated” compared to a string of other markets he has worked in.

“There’s a lot of work to be done on simplification and clarification of tax,” he said.

Separately, Mr Elliott said ANZ had “big ambitions” after forming a strategic alliance and buying a $50m stake in property media and technology firm View Media Group.

“Our strategy is we’ll provide home loans at really competitive prices but we are going to wrap that in a broader relationship with that customer,” he added.

“We are really keen on the View Media Group relationship … together we build services and propositions that help you right through that journey of buying a home.”

As part of the View Media transaction, ANZ gains a seat on the company’s board. View Media – which includes a residential listing portal, real-estate marketing agencies and property-tech businesses – is led by former Domain boss Antony Catalano.

Originally published as ANZ CEO Shayne Elliott urges more consultation on superannuation tax changes