Peter Burgess, chief executive of the SMSF Association, said a range of topics were discussed in the meeting with Financial Services Minister Daniel Mulino, including Division 296 tax, the Delivering Better Financial Outcomes reforms, the CSLR, and AFCA’s wholesale investor determinations.
“It was a very cordial meeting and laid the foundation for a strong ongoing working relationship,” Burgess said.
“We discussed the proposed Division 296 legislation in detail. We once again raised our concerns about the design of this tax, the unintended consequences, and we put forward alternative options.
“Unfortunately, there was no indication that the government was open to making changes, with the minister reconfirming the Treasurer’s intention to proceed with this tax in its current form.”
Burgess said the SMSFA wanted to reiterate to members that it had submitted a number of alternative options to Treasury regarding the Division 296 tax, despite comments from Jim Chalmers last week that no alternative approaches have been proposed.
“Over the past two years, the SMSFA has put forward several alternative options that would achieve the government’s policy outcomes without the complexity, cost, unintended consequences and disruption to the flow of investment funds so critical to productivity growth and innovation,” he said.
“The government’s Division 296 legislation started out as a proposal to tax unrealised gains and not index the cap, and there has been no deviation from these positions – despite compelling evidence of its potential deleterious impact on the wider economy.
“The absence of adjustments or receptivity to alternative views indicates that the consultation was merely a process to endorse a pre-decided policy position instead of a genuine effort to consider other views. Despite this, we will continue to advocate for changes to this ill-conceived legislation.”
I would go further and say that Chalmers has been outright deceitful from the day that he announced the few with member funds of over $400m, way back mid February 2023 in a prelude to announcing this Treasury proposal in late February 2023.
He was even asked point blank about Division 296 and the new tax on super on national TV during the Treasurer/Shadow Treasurer debate and he just stood there and said not one single word. Stupidly, Taylor let him get away with it.
This country is screwed if it’s only resort is to rob people of their life’s savings.
Clearly Jim is a Liar where a number of fairer alternatives have been promoted in other media outlets not just here. The Government will be sorely disappointed as unintended consequences will result in less tax being raised as the wealth (other than socialist) will take evasive action to minimise the tax, including some re-locating abroad where they may be treated better.