Super tax plan touches a low on bid to raise revenue

The government’s proposal to tax unrealised gains is akin to taxing workers at the beginning of the financial year, with no refunds or allowances if the worker subsequently loses their job (“Unrealised gains tax ‘in play’ as Greens leader unveils policy aims”, 27/5).

It is a new low in government thinking on how to raise revenue, and shows a lack of principle and fairness. If the government must raise revenue to cover its spendthrift ways, it could show some courage and begin reforming the tax system. It could start by widening the scope of the GST but not increasing the rate.

It’s a much fairer tax, everyone pays according to what they spend, and would be very efficient to implement. Those worst affected can be compensated via existing schemes.

Geoff Keynes, Aldgate, SA

It’s game, set and match. Jim Chalmers’ unindexed, unrealised gains superannuation tax is now a certainty.

Initially it will affect only people with $3m or more in superannuation. However, as time goes by more and more people will be stung. Younger generations don’t fully understand the impact it will eventually have on their retirement savings.

Riley Brown, Bondi Beach, NSW

I call on Anthony Albanese to rein in Jim Chalmers to call a halt to the proposed tax on unrealised capital gains.

Play fair, Labor Party. This will undermine investment and future planning initiatives. We are truly done and dudded as a country if this tax is introduced. The negative implications will be far-reaching. Come on, Albo and Jim.

Julie Dowd, Brisbane

It is time the Treasurer revisited the taxation reform suggestions made in the Henry review during the Rudd government.

There was no suggestion among these reforms of an unrealised capital gains tax on super balances over $3m. It is a draconian socialistic tax, yet Jim Chalmers is persisting with a taxation that is levied when no transaction has taken place.

Even worse is the fact it will be levied only on super that is not a defined benefit superannuation, which therefore excludes politicians, judges and public servants, making it very convenient for the Prime Minister and others.

If the Treasurer is genuine about reducing the budget debt he needs to introduce real taxation reform, and a good place to start would be to revisit the Henry reforms.

David J. Gray, Peppermint Grove, WA

The proposed new super tax does not account for unit-based (government) schemes in which people purchased units with after-tax money. It appears to be a retrospective double tax.

Further, the option of a lump sum or pension on retirement, or after, meant the lump sum or capital would decline in value annually until the end of the estimated retirement cycle, when it would be worth very little. So will this tax apply to phantom capital?

Will it affect teachers, nurses, police and many others who in their declining years will somehow have to fork out?

Joseph Bright, Cremorne, NSW

As Robert Gottliebsen points out in his excellent article on the financial folly of the Jim Chalmer’s unrealised capital gains tax (“Chalmers destroys Keating’s vision”, 24-25/5), it is ironic that Chalmers is seeking to destroy Paul Keating’s excellent superannuation structure. Chalmers’ doctorate was an analysis of Paul Keating’s economic vision for Australia.

To add insult to injury, any “Chalmers tax” calculated by this proposed UCGT is not to be paid by the super fund but by the individual beneficiaries of the super fund. Better not have your children as beneficiaries of your super fund.

John Kopcheff, City Beach, WA

One question that appears unanswered regarding the proposed unrealised capital gains tax on super balances over $3m is whether it replaces existing capital gains taxes or is in addition to that tax.

Double taxation goes against every tenet of tax policy, so if this new tax on unrealised capital gains replaces existing capital gains taxes triggered on the sale of an asset, then it would appear that this cash-hungry government is simply bringing forward taxes that otherwise would not have been payable for many years.

Mary Hackshaw, Northwood, Vic