Together, Schedules 1 to 3 to the Bill and the Imposition Bill reduce the tax concessions available to individuals with TSBs exceeding $3 million. The changes aim to improve the equity of the superannuation system and its fiscal sustainability over time.
The Bill should be supported because it promotes fairness by ensuring that generous tax concessions are better targeted towards those who need them most, rather than individuals with exceptionally high superannuation balances. By reducing tax concessions for individuals with TSBs exceeding $3 million, the Bill aims to enhance the equity of the superannuation system, ensuring that taxpayer support is not disproportionately benefiting a small number of wealthy individuals. This measure aligns with the government's objective to preserve savings for a dignified retirement while maintaining fiscal sustainability [Judgment].
Additionally, the expected increase in tax receipts by $2.3 billion in the 2027-28 financial year demonstrates a significant fiscal benefit, which can be redirected towards other essential services and infrastructure, maximizing overall societal well-being [Judgment].
The Bill should be opposed because it imposes additional taxes on individuals who have legally accumulated wealth within the superannuation framework, potentially undermining the property rights of these individuals. Taxing the earnings of those with TSBs over $3 million could be seen as punitive and may discourage savings and investment [Judgment].
Moreover, such measures might set a precedent for future policies that target specific wealth thresholds, leading to uncertainty and instability in financial planning for retirement. This could deter individuals from engaging with the superannuation system altogether, thereby reducing civic engagement in financial and retirement planning [Judgment].
2023-11-30
Before Senate
Unspecified
Treasury
Taxation, Social Support / Welfare, Financial Regulation