ACTU backs indexation of $3m super tax threshold but no urgent need
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The news: Australian Council of Trade Unions secretary Sally McManus said the federal government would likely need to eventually index its planned $3 million threshold for a superannuation earnings tax.
Appearing on Channel Nine's Today program on Tuesday morning, McManus flagged that over time an increasing number of people will be captured by the proposed tax, but that it would be “a very long time” before most people would be impacted.
The context: The federal government has proposed an additional 15% levy on a proportion of superannuation earnings for balances worth more than $3 million, including through unrealised gains.
Although not yet legislated it is expected to hit super balances at the end of financial year 2026.
Some economists are concerned that if the tax threshold is not indexed to inflation, over time an increasing proportion of Australian workers would be hit with the proposed tax regardless of their relative wealth or standard of living. Treasurer Jim Chalmers has not indicated supported for indexing the threshold.
What they said: “Over time I do think it’s got to be indexed because you’ve got to make sure eventually people don’t end up there, but that’s a very long time in the future,” McManus said.
“I think that it does need to be indexed, though, so I do support what they’re saying about that, but I don’t think there’s some you know urgent need to do so right now.″
Earlier in her remarks she suggested you’d have to wait “100 years into the future to see it really affecting many people”.
The source: Channel Nine's Today program
