Election 2025: Anthony Albanese not for turning on super tax

Anthony Albanese is playing down the prospect of reforming the tax system if he is re-elected, sticking by the model of his plan to raise taxes on some superannuation balances.

Anthony Albanese speaks at the National Press Club in Canberra on Wednesday. Picture: Jason Edwards / NewsWire

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Anthony Albanese is playing down the prospect of reforming the tax system to pay for his big-spending agenda if he is re-­elected, sticking by the model of his plan to raise taxes on some superannuation balances while rejecting the need to explore new revenue measures.

The Prime Minister’s refusal to consider changes to his plan to tax unrealised gains on super balances worth $3m and above, which would raise $40bn over a decade, comes as the proposal is condemned by the founding investor in Afterpay.

David Hancock, who has donated to Labor MP Andrew Charlton, said the government’s policy would have been a “death knell” for investment in the Australian company that was sold to US fintech giant Square for $39bn in 2021. “I was the first investor in After­pay. I mortgaged my house and went all in and I didn’t sell a single share for seven years. Over that time the shares went up a lot but we had no cash,” he said.

“Now can you imagine if I had to pay unrealised capital gains tax on that – it would have been the death knell.”

Mr Hancock said his Labor friends who had “understanding of start-up companies” were “horrified” by the policy. “We had university students working for us who we paid in shares because we didn’t have cash,” he said.

“How would those students have paid for unrealised capital gains if the tax ends up with them?”

In a speech at the National Press Club on Wednesday, Mr ­Albanese declared he was not for turning on the policy and played down the number of people it would impact.

“It will affect, importantly, 0.5 per cent of the superannuation population. That’s all,” he said.

“And it won’t mean they don’t get concessions. It will just mean the concession isn’t as large. That’s our policy.”

After S&P warned that the country’s AAA credit rating was at risk under the pre-election spendathon unless Labor and the Coalition found a way to pay for their promises, Mr Albanese said he was not considering new revenue measures or tax reforms such as clamping down on concessions for family trusts.

He said he was committed to delivering on the tax plan outlined in the March budget, despite his government being unable to pay for its spending and with the budget on track for a decade of deficits.

After ruling out changes to the tax treatment of negative gearing and franking credits during the campaign, Mr Albanese on Wednesday also talked down the chances of Labor reviving a Bill Shorten-era plan to increase the tax rate on distributions from family trusts.

The Shorten-era policy – forecast in 2019 to raise $7.8bn over four years – was being pushed from opposition by Jim Chalmers but was killed after internal discussions leaked to The Australian.

“What we’re looking at is what we’re putting forward at this election campaign,” Mr Albanese said.

“We want Australians to get lower income taxes, that’s what we’re looking at.

“We have a comprehensive plan that we’re putting to the Australian people.”

When asked if he would consider launching a wholesale review of the tax system if re-elected, Mr Albanese said each of the four budgets handed down by his government were a review.

In his final major speech ahead of Saturday’s poll, Mr Albanese said Peter Dutton would make Australia “darker and nas­tier”.

“In the total absence of anything constructive to help in the present, or anything positive to say about the future, the Liberals are urging Australians to go back to the past,” Mr Albanese said.

“Back to a darker and nastier and more extreme version of the cuts and conflict and culture wars that people rejected less than three years ago.

“The government I lead is determined to take Australia forward. I have always been optimistic about Australia’s future and never more so than now.”

He said the Coalition had spent the past three years “raging about problems” but was not coming to the election with solutions.

“They are not ready or willing to level with the Australian ­people,” Mr Albanese said.

“Their answer to every question boils down to: ‘We’ll tell you after the election.’

“(Peter Dutton) doesn’t want to share the facts about his agenda or what it will cost.

“He should have the guts to front up and explain where the money will come from to pay for (the Coalition’s nuclear policy) before Australians cast their vote.”