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Federal Labor government superannuation plan threatens family farms in self-managed super funds and breaks promise not to touch

David Littleproud, The Nationals' leader, expresses concerns about taxing unrealized gains in SMSF-held farms, mainly affecting rural areas, as draft legislation proposes a 15% tax hike on super accounts exceeding $3 million.

By news@gippsland - 4th October 2023 - Back to News

Labor's superannuation changes are set to disproportionately impact family farms held in self-managed super funds (SMSF) if they exceed new thresholds. Leader of The Nationals David Littleproud said family farms, particularly where their properties are in a SMSF, would be hit the hardest by Labor's superannuation tax grab. Mr Littleproud said the changes would allow Labor to tax unrealised gains on SMSF-held farms across regional and rural Australia.

Labor's proposed superannuation changes could disproportionately affect family farms held in self-managed super funds (SMSFs) with new thresholds

Impact on farmers' SMSFs

Mr Littleproud said, "You only have to look at the current year, where property prices have increased but conditions have turned dry, and input costs are at record highs. Farmers may not have the cash flow to pay the tax on the unrealised capital value in their property that was part of a SMSF."

"It gets worse for our sheep producers who face tougher prospects since the Labor government has announced banning live sheep, which has rendered sheep worthless and therefore unable to provide any cash flow to pay Labor's new tax. Many families and farm owners previously set up SMSFs as their future retirement and savings, unaware Labor could come for their assets with more taxes. This is deceitful," he said.

Superannuation tax hike

It comes after new draft legislation released by Labor showed the changes will mean an additional 15 percent tax rate, (from 15 per cent to 30 per cent), on the earnings of super accounts worth more than $3 million.

Mr Littleproud added Labor had ignored feedback from concerned industry and farming groups and was set to go ahead with its superannuation changes, despite being unable to say how many primary producers and family business owners would be impacted in its Treasury modelling.

"Labor now wants to tax hard working families year after year, on paper gains caused by nothing more than volatile commercial property markets. Labor is misleading regional, rural and remote Australia, breaking its promise before the election that it wouldn't touch superannuation. Not only is Labor now coming for your super, Labor is also coming for the unrealised increased value of assets in a SMSF, which sets a dangerous precedent," he said.

Pictures from Agriculture Victoria Facebook page.

Source: http://gippsland.com/

Published by: news@gippsland.com