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The Australian
an hour ago
- The Australian
Transport moguls threaten super sell-off over Labor's unrealised gains tax
Transport moguls Kim Lindsay and Neil Mansell have revealed they are considering liquidating part of their self-managed super funds in response to Labor's tax on unrealised capital gains, as billionaire Lindsay Fox declares that Jim Chalmers' cornerstone tax policy will backfire. Concerns have been raised that superannuants would change their investment and retirement structures before Labor introduces the tax, jeopardising Treasury's forecast that it will reap as much as $43bn over the next decade and help the Treasurer avoid deeper deficits. Labor wants to introduce an unrealised capital gains tax starting with $3m superannuation accounts without indexation. The Greens, who will be needed to approve the tax, want the threshold to be even lower at $2m. Mr Fox, a longstanding friend of Labor who had Anthony Albanese fly in his private helicopter to a five-hour barbecue with him and former Victorian premier Daniel Andrews, said he thought Labor might change its mind on unrealised capital gains tax. 'I just think it is a bad policy,' Mr Fox told The Australian. 'I don't know why they would do it. It won't work. 'Everything the government does backfires. I just don't believe they will end up doing it.' The intervention from Mr Fox, who did not reveal his own superannuation circumstances and whether he would try to avoid paying the tax, comes as participants of Dr Chalmers' economic reform roundtable have criticised the tax grab on unrealised gains. One of the country's most respected business leaders and a key figure in Kevin Rudd's 2008 productivity summit, Warwick Smith, has warned Anthony Albanese to pursue any reforms agreed upon at the upcoming roundtable slowly, as the Prime Minister seeks to wrest back control of the summit from warring unions and corporate groups. The comments by the Howard-era minister and Dr Rudd's 2011 pick for the Australia-China Council come ahead of Labor seeking to legislate the unrealised gains tax once the roundtable is concluded. Asked about the concept of taxing unrealised capital gains and his reflections from Labor's last major productivity summit, Mr Smith said the government should learn from how John Howard implemented reform. Mr Lindsay – recently retired chief executive of ASX-listed trucking company Lindsay Australia – said he was considering whether to sell down assets in his superannuation fund to reduce the balance below the $3m threshold. 'Its absolute bullshit,' Mr Lindsay said. 'People may as well just go on the pension. It's a disgrace. We are considering what we will do and whether to sell part of it.' Trimming the size of the self-managed super fund below $3m is an option many are considering as they wait to see where Labor's threshold will land. 'Paul Keating introduced super and they encouraged us to get into it. But this tax will be a hell of a mess,' Mr Lindsay said. Mr Mansell, who operates a 500-truck transport business, says he was encouraged by government to use a self-managed super fund years ago and is frustrated by the about-face of introducing unrealised gains tax. He is now actively considering selling assets out of it not only to avoid being captured by the tax, but to raise money to pay it if he is liable. 'It's a terrible idea,' Mr Mansell said. Years ago we were pushed into this to save for our own retirement. I put a lot of it into industrial land but these are assets, how do you pay for the tax? So I think I might have to sell and if you sell you also have to pay capital gains. I can't believe Labor will go with it.' The tax is expected to start with 87,000 individuals, but Labor's policy is forecast to affect at least 500,000 Australians by the time they reach retirement, according to the Financial Services Council. The tax office has said it is aware that many of superannuants would seek to minimise their tax if the new laws were introduced. 'We have seen some early suggestions that private groups may seek to alter their arrangements to limit their exposure to the proposed Division 296 tax in case the legislation is passed at a later date,' an ATO spokesman said. 'Our focus is on understanding emerging issues and ensuring we are well-positioned to respond to any risks that may arise. 'We analyse this intelligence to identify potential tax risks and determine how to tailor our support and engagement activities to address these risks.' Embedded in Labor's legislation for the tax, which is yet to be reintroduced but will likely have a backdated start of July 1, are clauses that allow parameters of the tax to be adjusted. In Labor's new super plan, known as the Better Targeted Superannuation Concessions and other Amendments Bill, is the clause 'section 296-60' which gives the Treasurer power to modify super tax rules further after the original bill is approved by parliament. Some tax experts have suggested that concessions have been too generous for those with high net-worth accounts and that Labor's tax plan for unrealised gains was about righting a historic wrong. Professor Miranda Stewart, who was a visiting adviser in the Treasury last year, said superannuants should, 'just relax and pay the tax'. 'It's fixing a wrong. It's fixing a policy that has caused a significant problem we need to solve,' Professor Stewart said. 'How do you deal with the lag effects of what has been done in the past, which it feels like at least the Treasurer's reforms are partly trying to get to.' PM prefers small steps, not Chalmers' giant leaps Politics Business leader Warwick Smith has warned Anthony Albanese to hasten slowly with any reforms agreed upon at the upcoming economic roundtable, amid warring unions and corporate groups. Politics Anthony Albanese has dampened expectations ahead of the economic reform roundtable, insisting his government will not outsource decision-making to business leaders and unions.
Perth Now
an hour ago
- Perth Now
Jostling for government hots up as final votes declared
Tasmanians hope to soon gain a clearer picture of their next government, as the declaration of poll ceremony finalises results of a snap election that left the state in political limbo. With the votes counted and elected members confirmed, focus shifts to high-stakes negotiations as the major parties vie to form the next government. Tasmanian Premier Jeremy Rockliff has declared his readiness to accept the "will of the people" as he positions the Liberal Party as the strongest contenders to form government. He revealed on Sunday he intends to ask Governor Barbara Baker to recommission his government, saying he is keen to "get on with the job". "We want to work with each and every member of parliament to ensure everyone has their say," Mr Rockliff said. "Tasmanians are sick and tired of the political games. They have elected a parliament, they expect all members of parliament to work together." The final makeup of Tasmania's parliament is 14 Liberals, 10 Labor, five Greens, one Shooters, Fishers and Farmers MP and five independents. Labor's Jess Greene and independent George Razay claimed the final seats in the division of Bass on Saturday. Mr Rockliff and Labor Leader Dean Winter are intensifying negotiations with the crossbench to form another minority government as they attempt to secure the 18 parliamentary votes needed to govern. Professor Razay didn't reveal whether he would support the Liberals or Labor when speaking to ABC Radio Hobart on Monday. "Nobody knows George's views until the day of voting because I like to listen to every opinion and do my background research and then make my opinion on that day," he said. "So I said to both, 'look don't worry about me, if you are able to form a government, I am going to support whoever forms a government'." Deputy Labor Leader Anita Dow criticised Mr Rockliff's pledge, saying he had "learned nothing" from the starring role he played in the collapse of the last parliament. "The increasingly arrogant Premier claimed that without changing the way he operates, a new government he leads could last a full term,'' she said. "Despite losing the confidence of the house, he still thinks the last parliament was working well." The snap election on July 19 was triggered after Mr Rockliff lost a no-confidence motion, prompting the state's second election in 16 months. A key sticking point in negotiations to form government is the major parties backing a new stadium on Hobart's waterfront, which is a condition for Tasmania getting a side in the AFL. But the Greens and some independents are bitterly opposed to the plan.
The Australian
2 hours ago
- The Australian
McKell Institute warns thousands of Australian manufacturing jobs are at risk
Thousands of Australian manufacturing jobs, particularly in regional areas, face significant risk as China intensifies investments to bolster its own manufacturing industries, a new report warns. The research by the McKell Institute reveals approximately 73,000 jobs in Australian regions reliant on refining and smelting metals are vulnerable. The report highlights the town of Port Pirie in South Australia, where state ministers have called for a federal bailout to save its lead smelter, a crucial local employer. If the smelter closes, the report estimates the town's population could drop by around 2,000 people, roughly 11 per cent, as economically productive residents and their families relocate. 'South Australia simply cannot afford to lose industrial anchors such as the Port Pirie smelter – anchors that have sustained regional communities for generations,' McKell Institute chief executive Ed Cavanough said. 'Our analysis shows that if the Port Pirie smelter were to close, the town's population could drop by around 2,000 people – that's 11 per cent – in the first year alone.' The report claims China's 'aggressive' industrial subsidisation, now likely exceeding its defence spending, is a major driver behind the mounting pressure on Australia's refined metals sector. In 2019, China invested an estimated $407 billion in industrial subsidies, enabling it to produce refined metals at significantly lower costs and flood global markets with cheap products, the report said. 'In the short-term, China's geoeconomic strategy is designed to onshore as much global heavy industrial capacity as possible,' Mr Cavanough said. 'In the longer-term the strategic goal is limiting the viability of critical manufacturing in competitor economies, including Australia. 'This would create a huge long-term economic advantage for China, and hobble Australia's industrial capacity.' Mr Cavanough said other nations are actively responding to these challenges while Australia's current approach of reacting plant by plant is unsustainable. 'Currently, the government is playing industrial whack-a-mole – working with individual refiners to preserve individual plants as they come under threat,' he said. The report urges the Albanese Government to develop a cohesive national strategy to safeguard communities reliant on the industry. Read related topics: China Ties Breaking News England v India: Three talking points Breaking News Israeli PM says to brief army on Gaza war plan
