Michele Bullock isn't worried about financial risks of super tax overhaul
Business groups are warning Labor’s new super tax could distort investment and hurt small businesses, but the RBA governor isn't too concerned about stability.
Reserve Bank governor Michele Bullock is not concerned about the fallout from the government’s plan to tax unrealised capital gains in high-value superannuation funds, despite warnings from corporate Australia that it risks fundamentally changing the tax system, altering investment behaviour and prompting significant divestitures.
At the Reserve Bank’s post-interest rate press conference on Tuesday, Bullock dismissed any immediate implications for financial stability from the proposal to tax superannuation balances above $3 million.
“My initial reaction would be, probably, [that it would not have] great financial stability implications,” Bullock said in response to a question from Capital Brief.
Bullock also chairs the Council of Financial Regulators — comprising representatives from APRA, Treasury and ASIC — which has previously examined risks to the Australian financial system arising from the superannuation sector, including analysis of self-managed super funds (SMSFs) and their assets.
