As voters prepare to head to the polls, the Australian business community has strongly condemned a plan by the Albanese government to introduce a tax on unrealised capital gains for people with more than A$3 million worth of assets in their superannuation accounts.
The Australian reports that one of the country’s most prominent business leaders, Andrew Pridham, has described the proposed tax, of up to 30%, as “ill conceived” and a sovereign risk to investment in Australia. Pridham, who is chairman of the Sydney Swans and the local boss of global investment bank Moelis, says taxing unrealised capital gains is unprecedented, unrealistic and unfair.
Concern is also growing that the initial target of wealthier superannuation accounts is a “Trojan horse” for a wider application of the tax. Up to 1.8 million Australians will likely be affected in the first instance but if Labor doesn’t achieve an outright win after tomorrow’s federal election and needs the support of the Greens to govern, the target could drop to superannuation accounts with balances of A$2m.
The Australian estimates about A$25 billion could be removed from superannuation accounts by wealthy retirees should the tax be implemented.
Compulsory superannuation was introduced in Australia by the Keating government on 1 July 1992. The compulsory employer contribution is currently 11.5% and will rise to 12% in July this year.
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