CA ANZ pushes for government to scrap super tax concessions policy

CA ANZ is pushing for the abolition of the Superannuation (Better Targeted Superannuation Concessions) Bill 2023 following concerns surrounding the current design of the proposed legislation.

The body once again outlined its opposition to the policy in its 2025–2026 pre-budget submission ahead of the listed debate for the bill on Thursday in the Senate.

The policy would apply an additional 15 per cent tax for individuals with more than $3 million in total superannuation assets.

CA ANZ CEO Ainslie van Onselen said the legislation sought to address the problem of current high super balances for a small cohort of individuals who took advantage of past legitimate superannuation and tax policies.

Van Onselen also noted most of these individuals were elderly and their super investments would leave the system over the next decade.

“CA ANZ is concerned about the current design of this proposed legislation, including the lack of indexation of the $3 million cap, the taxation of unrealised capital gains and the carried forward allowance of capital losses,” she said.

“There are major design flaws with this proposed legislation. We also believe this tax will be very expensive for individuals, superannuation funds, tax agents, financial advisers and the ATO to administer and will raise little net revenue when all those costs are considered.”

CA ANZ said along with the abolition of the super tax concessions policy, it was pushing for the major parties to commit to tax reforms, more support for Australia’s SMEs and for its members to be allowed to give people the financial advice they need for a “dignified retirement.”

Ahead of the looming election, the body said it hoped to see sensible policies from both major parties that would support Australians on a long-term timeline.

CA ANZ suggested an overhaul of the country’s tax system and to move away from the overreliance on personal income tax.

As Australia continued to grapple with economic and geopolitical challenges, a resilient and sustainable economy was needed to withstand future headwinds, van Onselen said.

“Australia has relied too heavily on personal income tax to prop up our balance sheet, and that is taking a toll on hardworking Australians who are just trying to get ahead in a difficult economy,” she said.

“Budgets are about decisions, and this is the government’s opportunity to make the right decisions that bolster our economy and position us for success.”

The federal government was also called to make the instant asset tax write-off threshold and the tax carry-back rule permanent and to issue a grant for small businesses to access financial health check services.

Van Onselen noted that these measures were simple, effective and would immensely help the small business sector which would “lighten the burden” on its vital economic contribution.

CA ANZ chief economist Richard Holden said many of the new policy actions outlined in the 2025–2026 Federal Budget Submission demonstrated how Australia could rise to a new productivity challenge in the age of labour scarcity.

“We need labour-market flexibility, regulatory transparency, a competitive tax system, and resilient energy systems and supply chains. CA ANZ’s policy actions are both necessary and overdue,” Holden said.

“They are required for Australia to be a great place for business to invest and locate, and they are crucial to the economic and social wellbeing of all Australians.”

“CA ANZ looks forward to working with the government on these important recommendations to improve Australia’s economic position and move our economy forward.”