According to the draft legislative program for the Senate next week, the super tax bill is set for debate after three other bills – the Electoral Legislation Amendment (Electoral Reform) Bill, the Veterans’ Entitlements, Treatment and Support (Simplification and Harmonisation) Bill and the Workplace Gender Equality Amendment (Setting Gender Equality Targets) Bill.
It gives the government a week to try and gather the support of crossbench senators in order for it to pass.
To secure its passage, the government needs 39 votes in the 76-seat upper chamber and is relying on the support of just three crossbenchers.
The bill was dropped from the schedule at the last minute on Thursday (6 February), indicating that the government had not managed to secure the three votes it needed in time.
“It’s a sure sign the government knows they don’t have the numbers in the Senate to pass this bill. It was clear from my discussions with Senate crossbench members earlier in the week that their concerns with this legislation run deep,” Peter Burgess, SMSF Association CEO, told SMSF Adviser.
“Given the unusual design of this tax and the system constraints of some of the large funds, there is no ‘quick fix’ to the issue of taxing unrealised capital gains, which is the primary concern of the Senate crossbench. There is still a mountain to climb but it could also be a sign they [the government] haven’t yet given up on getting the legislation passed.”
Earlier this week, it was alleged that the government was heavily lobbying crossbenchers to get the bill across the line, even going so far as to pair the bill with a populist measure to try and force its passage.
Burgess said on the matter: “It seems the government is looking to team the Better Targeted Superannuation Bill with a measure that would reduce surcharges on credit card transactions.”
The Council of Small Business Organisations Australia told SMSF Adviser that the credit surcharge measure would negatively impact the small business sector and ultimately consumers would end up paying more for goods and services.
Luke Achterstraat, CEO of COSBOA, 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,” 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.”
Given the calls against this bill by very-well respected organisations, and given the lack of proper consultation with the public, and given barely any changes to what is quite obviously a deeply flawed and egregious bill, and given how it will destroy life-savings and retirement plans of aspiring hard-working, sacrificing Australians that should instead be congratulated and applauded for their hard-work, contribution and sacrifice, one would think that it would behoove ALL senators to understand exactly what is happening and do the right thing.
Labor votes as a block which is very wrong with legislation such as this. The Greens are just the Greens, much like the Labor party – both like to be seen as the Robin Hoods of supposedly rich people as it is “easy to hate rich people” along the lines of what Meg Heffron recently wrote. This is unAustralian. Anyone that understands what this really is about can see that it is seriously flawed.
I hope that those that are voting for this, have studied this and understood it, and if they have not, it is time to URGENTLY SEEK TO UNDERSTAND before casting your vote – PLEASE.
My letters to my local Labor MP have been passed on to her colleagues in Treasury. Those letters plus ones written directly to Treasury have been responded to with glib and arrogant responses that show that they are either ignorant and grossly out of their league and should not be in Treasury, or they are deliberately arrogant and unsympathetic to the destructive impact that this will have on people who have done nothing wrong except be stand-up citizens trying to be less of a burden on society and who also already contribute far in excess of the average Australian in taxation revenue.
This is nothing more than theft and I feel that those in Treasury know this but simply DO NOT CARE as they need to raid our life-savings in order to waste even more money and remain in power with their lies and bribes. Educate yourselves PLEASE to understand what is really at stake here and what is really going on here.
WAKE UP and do the right thing – PLEASE!
We are a minority group (“sliver” as spin-dr Chalmers calls us) and we are being discriminated against and thrown under the bus.
Simply vote the paired bill down and the next government can introduce new and better considered legislation regarding card surcharges for quick passage given the current government supports it.
So, this is a “lose/lose” situation. 80,000+ super funds get to pay more tax on unrealised gains AND 1Million+ small businesses get to have increased costs ????