Assistant Treasurer Daniel Mulino defends super tax as ‘fair' despite exemption for some state politicians on old pension scheme

Sky News AU

19-05-2025

The Albanese government has declared its controversial superannuation tax is a matter of 'fairness', despite some state politicians being exempted from the policy.
Sky News Sunday Agenda revealed that former state premiers and state parliamentarians on the old pension scheme will be exempt from the 30 per cent tax.
Labor MPs have since told Sky News they have been receiving emails from constituents about the perceived unfairness in the tax.
Assistant Treasurer Daniel Mulino told Sky News on Monday the decision to double the tax on super funds above $3 million was to make the system 'fairer'.
'At its heart, this is a tax about fairness. It's a tax that makes our super system fairer and more sustainable,' Mr Mulino said on Monday.
It comes after the office of Treasurer Jim Chalmers confirmed that former state politicians on the old pension scheme would be constitutionally exempt.
The loophole extends to members of staff of a governor of state, clerks of a house of parliament of state and judges and magistrates.
In response, Trade Minister Don Farrell acknowledged the discrepancy but defended the broader principle.
'There are some constitutional issues that relate to how superannuation is dealt with by state governments,' Mr Farrell told Sky News.
'But rest assured that the people who are going to be making this decision will themselves be covered by this tax — if they get to that high level of super income.'
Federal politicians, including Prime Minister Anthony Albanese and former opposition leader Peter Dutton will not be exempt.
Despite the government's insistence that the measure is targeted and reasonable, it has drawn sharp criticism from the opposition.
Shadow finance minister Jane Hume told Sky News the super tax had been 'bad (policy) from day one'.
'We've never had a tax of unrealised capital gains before. That's taxing profits before you've actually made profits,' she said.
The government has not indexed the $3 million threshold, a point of contention among fund managers and economists.
Treasury has estimated that around 10 per cent of taxpayers will exceed the cap within three decades if no changes are made.
However, AMP Deputy Chief Economist Diana Mousina has forecast the average 22 year old will be hit by the tax by the time they retire.
CPA Australia's Superannuation Lead, Richard Webb, called on policymakers to ensure the policy will be indexed to inflation.
'Bracket creep is already having a silent eroding effect on personal finances,' Mr Webb said in a statement.
'Allowing this further erosion of superannuation savings is contrary to the fundamental principles of our tax system.'
The Assistant Treasurer said the policy would not be indexed but argued that future governments could revisit the future threshold in later years.
The new tax, which comes into effect from July 1, will double the tax rate on earnings over $3 million from 15 per cent to 30 per cent.
It has been forecast raise an additional $2.3 billion in 2027–28 and $40 billion over the next decade. flashpoint in Labor's claims to economic credibility — and fairness.