Nation’s food security at risk with Labor super tax plan

Did you eat today? Thank a farmer (“Labor eyed tax exemption for farms, small business – and said no”, 6/6).

But do it soon, as so many are really struggling. Floods on the east coast have decimated so many areas, not just towns and homes but also many farms. So many animals dead and the lucky few survivors marooned on “islands” with little food and starving. Floods have affected a large dairy area and the farmers will take a very long time to recover, if indeed they can. Some have lost most of their milking herd.

Do we value our food security? I think not. We are so used to buying plentiful quality food whenever we want it. How would we feel about not being able to do that? Would we be happy to import our food? From where?

The new proposed unrealised capital gains tax, the super tax, may well see farmers having to pay, with money they don’t have, an impost on “on-paper cash” they have never seen and possibly never will see, adding huge further stress.

Farmers, of course, will mostly just carry on because they have to do so and many know no other way. However, many, or even most, will have a much larger debt. They cannot just stop when they like, and it takes a great deal of pain and cost for them to front politicians at Parliament House.

The “three Rs” have always been important in education (reading, writing and ’rithmetic), but now we should all be looking at those other “three Rs”: regional, rural and remote, both areas and people.

Carolyn Salter, Walcha, NSW

Labor’s proposed tax on unrealised capital gains breaches every tenet of tax policy.

It is established tax practice that tax may be levied on income or on profit. It also can be levied on consumption, such as with petrol, alcohol or tobacco. Taxing the increase in value of an asset before a profit is even realised goes against every rule of tax policy. Yes, tax a profit, but only when it is realised.

As everyone knows, assets rise and fall in value. A profit can be a profit only once it is realised.

This proposed tax is clearly nothing other than a wealth-grabbing exercise and is bound to end in tears. Worse, if Labor gets away with this wealth grab, where will it end? If Labor is so desperate for money to fund its $9bn a year renewables rollout and the rest of its cash splurge, a better idea might be to raise GST to 12.5 per cent and spread the burden evenly.

Mary Hackshaw, Northwood, Vic

Labor’s proposal to tax Monopoly money gains is outrageous.

That said, there is no good reason people paying tax at the top marginal rates should subsidise wealthy people who have chosen the tax haven of superannuation to increase their wealth. If superannuation accounts exceed a consumer price index-adjusted threshold of, say, $3m, then the fractional part of the income derived from that part of the account that is above the threshold should all be taxed at the otherwise applicable marginal tax rates. How can any fair citizen argue against that?

Peter R. Graham, Sydney

When I first began receiving my modest superannuation pension there was a small percentage of income tax payable, from memory about 5 per cent.

The government of the day put a stop to that and deprived future governments of some useful revenue. It seems to me that a reasonable not-too-progressive tax on super drawdowns would be a much more rational way to help to increase revenue than a tax on unrealised capital gains.

I would be happy to pay my share, but I’m not going to make voluntary donations.

David Morrison, Springwood, NSW

What is even worse than taxing unrealised gains in superannuation is taxing unrealised and even realised losses. If I buy a share for $10 and it drops to $5 but later recovers to $7 I have to pay tax on the $2 recovery without reference to my cost, whether or not I sell at $7 and crystallise my loss.

Taxing without reference to cost is highway robbery.

R. Krochmalik, Pearl Beach, NSW

Would someone please remind Anthony Albanese and Jim Chalmers that if they want to get more milk from the cow it will need to be in an environment where it can thrive.

Is it such a good idea to punish those whom the government will be relying on to drag us out of the doldrums by raiding their super?

Clifton Barker, Wahroonga, NSW