The National Farmers’ Federation (NFF) has expressed relief after a proposed superannuation tax failed to pass the Senate, giving farmers across Australia a reprieve.
NFF President David Jochinke stated that the agricultural sector had long raised concerns about the potential harm this Super Tax would cause to hardworking farming families.
“Thousands of Australian farms are held in self-managed superannuation funds (SMSFs), which not only help provide retirement income for farmers but also enable them to pass on their businesses to the next generation,” Mr Jochinke explained.
Modelling from the University of Adelaide revealed that over 3,500 SMSFs, which hold farming land, would be affected from day one if the tax were to be implemented. This number is expected to grow over time. In addition, small business owners, with more than 13,000 SMSFs holding business real property, would also face significant impacts.
“The farm sector is particularly concerned that taxing ‘unrealised gains’ could force farmers to sell their land just to meet the new tax obligations,” Mr Jochinke said.
“This tax would be disastrous for the hard-working Aussie families who established these funds with the goal of providing for their retirement and giving the next generation a chance to take over the business. Farming and small businesses are the foundation of Australia’s economy.”
The NFF has been lobbying against the tax for nearly two years, gaining support from a broad coalition of small business, accounting, and superannuation groups, all unified in their concerns about the taxation of unrealised capital gains.
“The NFF thanks the crossbench Senators who took the time to understand the implications of the Super Tax and stood up for farmers and small business owners,” Mr Jochinke added.
“While this is a positive outcome, we note the bill is still before the Senate, with Parliament scheduled to resume in February and several weeks of sitting before the next federal election. We encourage the Government to take this opportunity to consult with stakeholders and revise the policy.”
Nationals Pledge to Scrap the Super Tax
Nationals leader David Littleproud, a strong opponent of the super tax, has vowed that a future Coalition government would abandon the policy.
“A Coalition government will make sure this flawed policy is never implemented,” Mr Littleproud stated. “Labor’s decision to impose this tax during a cost-of-living crisis demonstrates their complete disregard for farmers. Throughout this process, Labor has shown they fail to understand the financial challenges farmers face, which are influenced not only by weather but also by fluctuating commodity prices.”
Mr Littleproud highlighted that many families had set up SMSFs with the expectation of securing their retirement and future, unaware that Labor could target their assets.
“Labor broke an election promise and is now backing down due to the overwhelming backlash. The Nationals will continue to fight for our farmers and small businesses,” Mr Littleproud affirmed.
