In a crystal-clear statement to the Senate, Tyrrell expressed her enduring opposition to the proposed legislation, complicating its journey through parliamentary approval. "There have been rumours circulating about my stance on the Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023. Let me clarify: I do not support the bill," declared Senator Tyrrell. The original article appeared in Financial Review.
Tyrrell highlighted an intense period of advocacy from the Labor Party pushing for her support, but she remained resolute in dispelling any false notions. "Labor claims their bill targets the top echelon, suggesting that individuals with superannuation accounts over $3 million should bear more tax. While it seems logical in theory—since $3 million is no small sum—it fails to consider future implications because this figure will not be indexed. Thus, what seems substantial today might not be as significant in the decades to come, leading to more Australians potentially being taxed under this scheme," she argued.
The senator highlighted a critical flaw with the proposed bill—the focus on unrealised capital gains. "Imagine a farmer in Tasmania who owns ancestral land now valued at several million dollars. Under this legislation, they would be taxed on this property's value despite having not sold it. Essentially, we'd be taxing them on an asset they haven't monetised and for which they don't possess liquid funds," Tyrrell explained.
"This approach makes no sense. So while Labor claims the bill targets affluent taxpayers, it inadvertently hits regular, hardworking individuals. This is not a fair go for Australians," she continued.
While advocating for reform, Tyrrell acknowledges the necessity of modifying the superannuation tax system to ensure fairness and sustainability. "The way super is currently taxed needs to be more equitable and less bewildering. The costs burdening the entire superannuation system are exacerbated by its complexity. Although super tax concessions need trimming, that change should simplify the system, enhance clarity, and yield long-term sustainability," she advised.
"Labor's proposal for a more targeted super tax concession is not a suitable solution, and therefore, I withhold my support. Consider the rumour dispelled," Tyrrell concluded in her address to the Senate.
