The Bill also includes provisions for disclosures about recognised assessment activities, amendments related to the Financial Regulator Assessment Authority Act, technical amendments for Treasury portfolio legislation, licensing exemptions for foreign financial services providers, and modernization of the Payment Systems (Regulation) Act 1998.
The bill aims to enhance the equity and sustainability of Australia's superannuation system by imposing a fairer tax regime on high superannuation balances, ensuring that tax concessions are better targeted and not disproportionately benefiting a small number of wealthy individuals. By doing so, it aligns with the principle of egalitarianism, aiming to reduce inequality in tax benefits. Moreover, the projected increase in government receipts can support public services and infrastructure, contributing to overall societal well-being [Judgment].
Opponents argue that the bill could penalize individuals who have diligently saved for their retirement by changing the rules on superannuation tax concessions, potentially undermining trust in the stability and predictability of retirement planning. This approach may be seen as discriminatory against those who have contributed more to their superannuation, which could discourage high levels of saving, ultimately affecting the economy [Judgment]. Additionally, the administrative burden and compliance costs associated with the new tax calculations could be significant for both individuals and superannuation funds.
2023-11-30
Before Senate
Unspecified
Treasury
Taxation, Social Support / Welfare, Financial Regulation