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COSBOA slams government’s attempt to deal over super tax

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By Keeli Cambourne
February 07 2025
2 minute read
4 View Comments
luke achterstraat smsfa xuqccr
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The government’s attempt to coerce crossbenchers to pass the super tax legislation by banning credit card surcharges has been slammed by the leading small business association.

Luke Achterstraat, CEO of the Council of Small Business Organisations Australia, has told SMSF Adviser that the government’s plan to scrap surcharges in exchange for the crossbench support for the Better Targeted Superannuation Concessions Bill would ultimately see many small businesses suffer.

“The government has completely got this around the wrong way,” Achterstraat said.

 
 

“What they need to do is firstly address the underlying issues concerning these surcharges.”

The government this week tried to garner support for the $3 million super tax bill to be passed through the Senate by pairing it with a populist measure that would see the abolition of merchant card fees for consumers.

However, on Thursday (6 February) the bill was taken off the official Senate order of business, implying the deal the government had been trying to broker with crossbenchers had failed.

Achterstraat said he was shocked the government would suggest the measure without consideration as to how small businesses would recoup those lost merchant fees.

“If they immediately banned surcharging, small businesses would be left holding the bill. The government shouldn’t just announce things like that,” he said.

“They need to go back and do the work and see the underlying reason for those fees, which is all about a lack of competition as well as other issues. When I saw the government was trying to do that deal with the Senate crossbench to proceed with the debit surcharge ban I thought it was bizarre and that it would jeopardise the RBA review on this issue, which is currently underway.”

The RBA began a review of retail payments regulation in October last year to examine the costs merchants face when accepting card payments and the framework for surcharging.

It noted at the time that Australians extensively use cards to pay for goods and services and while they may benefit from the convenience and security provided by card payments, in an environment of heightened concern around the cost of living, card payment costs and surcharging are attracting more attention from merchants and consumers.

“These issues are linked, since merchants would be less likely to surcharge consumers if card payment costs were lower,” it said.

“It is timely, therefore, to review whether regulatory settings could be adjusted to put further downward pressure on merchant card payment costs and whether the RBA’s surcharging framework remains fit for purpose.”

Achterstraat said there have been many submissions made to the review already and businesses have expressed their opposition to the surcharge ban.

“This is a strange approach [from the government] and not at all nuanced. It is obvious they don’t appreciate how small businesses operate and would be out of pocket,” he said.

“Small businesses would have to increase their prices to recoup the costs. If I’m being frank, this is just a populist approach that would go down well with consumers who may save 1.5 per cent at the terminal but the small business would have to increase their prices at the same time. It is a false economy.”

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Comments (4)

  • avatar
    I can't believe we're still banging on about Division 296, especially when Division 293 is far more insidious.  Div293 affected very few when it was introduced many years ago, but with inflation, we are finding Div293 assessments being issued left, right and centre among our client cohort these days.  It affects far more taxpayers (and lower income earners at that) than Div296 ever will.   The threshold, at $250k, has been in place for over a decade now.   Why are we not focusing attention on this instead?  It's beyond me. 
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    • avatar
      We were caught out with Div 293, once.  We did not realise until our accountant was doing our tax return.  We restructured our affairs to ensure that it did not happen again.
      That's the issue that we have with DIV 296 - we set up an smsf for our life's savings knowing that it would be forced savings as we would not be able to access the funds until we retired.  Unfortunately, those funds are sitting ducks for a government raid, annually, because they want to create a law to make it OK.  It is NOT OK.  I hope that the crossbench, inluding the Labor Crossbench who always vote as a block, did their research.  This tax is not OK.  It is egregious, unAustralian and UNFAIR to the "sliver" of the population that it will affect, as spin-dr Chalmers calls us, and he and his followers are hoping that it gets through because it's easy "to hate rich people" as another reader wrote recently.  It gives them more money to bribe the general public with - lying and cheating their way to get back in again.  How does the saying go? "Fool me once, shame on you; fool me twice, shame on me".  Wake up everyone!  Next it will be your paper profits that will be taxed for capital gains.
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  • avatar
    This goes to show the sheer arrogance and ignorance of this Government and the contempt for the RBA review into the retail payments regulation, the business lobby groups, financial services groups and the superannuation industry.
    It appears there was little to no genuine consultation with any stakeholders.
    This is NOT how to run a government.
    1
  • avatar
    "This is a strange approach [from the government]" - this is not strange at all in the context of what we have been dealing with in terms of Division 296 for 2 years this month.
    Spin-dr Chalmers is just up to his old snake-oil trading - master of spin that he is.
    Sadly, it is just typical of what we have come to expect from this Treasurer and the flawed Treasury department that he runs.
    Populist measure - absolutely.
    Just another deception of the Labor party intent on doing whatever is required to get into government.  They lied their way in and are showing similar deceitful behaviour this way round also.
    If I seem to be showing disrespect by me, but it is because it is absolutely warranted.
    Chalmers does not care about small business.  We are a minority, just like the "sliver' as he refers to us as, that would be seriously affected by Div 296.
    And this government talks about fairness.  They care only about their own selves.
    1
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