Labor left with ‘no choice' but to force super tax after weak GDP figures in March, shadow treasurer Ted O'Brien declares
Join SkyNews.com.au to watch the full interview with Ted O'Brien on Business Weekend at 11am (AEST).
The Albanese government's proposal to double the tax rate on funds in super balances above $3m and target unrealised gains could soon be legislated as the Greens' approval is all the bill needs to go through the Senate.
It comes as recent GDP figures showed Australia was headed back towards per capita recession territory with growth slumping to just 0.2 per cent in the March quarter.
The super tax proposal has faced fierce backlash from the Opposition, economists and leaders in the business community.
Mr O'Brien is among those and tore into the Albanese government's fiscal management on Sky News' Business Weekend.
'The only reason they're doing it is they've lost all discipline on fiscal responsibility,' the shadow treasurer said.
'Debt (and) deficits (are) going out of control and they've got no ambition for the Australian economy.'
He criticised Treasurer Jim Chalmers who lauded the 0.2 per cent growth, arguing the uncertainty from Donald Trump's trade war meant any growth was a decent outcome.
'We heard it last week from the Treasurer after the national accounts came out. What, 0.2 per cent growth in the quarter? Seriously? Lower than last time!' Mr O'Brien said.
'At a yearly basis it's running at less than half of the long-run average of growth and the Treasurer is happy about that.
'(There is) no ambition for growth of the Australian economy and when you have no ambition and you overspend, you have no choice but to go after the earnings, the money of your own citizens.
'That's what this super tax does.'
Labor's plan to tax unrealised capital gains has drawn backlash from Aussies concerned about small businesses, farmers and startups as many put assets in their self-managed super funds or use it as a low tax investment vehicle.
Wilson Asset Management founder Geoff Wilson said by forcing Aussies to pay taxes on paper gains it will hinder investment in Australia.
'Both Anthony Albanese and Jim Chalmers - and probably most of the government - are gaslighting the Australian people by saying: 'Look, this will only impact a very small percentage of people that pay the additional tax',' Mr Wilson told Sky News.
'That's correct, but what it'll do is actually impact about how $4.2 trillion in superannuation is invested.
'We anticipate that the money will come out of self-managed super funds (SMSF), which is about $1.1 trillion, and billions of that will go into the housing market and push house prices up . '
He cautioned Aussies who use their SMSF as a low tax investment vehicle will be discouraged from funding projects and businesses in the Australian market.
'People won't want to take risk on their superannuation in the self-managed super funds,' Mr Wilson said.
'The angel investors and the startups and the small companies in Australia that find it hard to raise capital, particularly at this point in time - that tap's going to be turned off.'
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