Wealthy Australians Brace for a New Tax on Retirement Savings
Australia is forging ahead with a new tax on its richest retirement savers amid concerns that the country's A$4.1 trillion ($2.7 trillion) pensions system is becoming a high-wealth accumulation vehicle.
The Labor government plans to slap an extra 15% levy on profits from pension balances above A$3 million, in a change likely to impact around 80,000 savers. That's on top of the 15% tax that they — and most Australian workers — already typically pay on investment earnings in their superannuation accounts.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Washington Post
an hour ago
- Washington Post
Pentagon review rattles submarine deal amid fears of China's naval edge
A Pentagon review of the multibillion dollar deal that will see the United States and United Kingdom supply Australia with nuclear-powered submarines has unsettled a key ally as China ramps up its naval ambitions for regional dominance. In Washington, the review reflects a concern among Trump administration defense officials and China-focused lawmakers: that the terms of the deal might risk the U.S. not having enough of its own ships and submarines to face off against Beijing's swelling supply. A senior U.S. defense official said the Pentagon is reviewing the Biden-era AUKUS agreement to ensure it is 'aligned with the President's America First agenda,' and that allies 'step up fully to do their part for collective defense,' echoing a broader agenda spearheaded by Defense Secretary Pete Hegseth that argues the U.S. needs to prioritize its own needs over those of others and compel allies to contribute more to their own defense. The uncertainty, analysts say, is amplified at a time when the administration is reshuffling its commitments in Europe and urging key allies to spend more on defense — including Taiwan and Australia — as Trump officials refocus U.S. strategy on the Indo-Pacific and the growing threat from Beijing. China's naval fleet now outnumbers that of the United States, with more than 370 vessels. Still, China lags behind the U.S. in overall vessel tonnage and technological sophistication, including in its undersea fleet, with just 12 nuclear-powered submarines compared to more than 65 operated by the U.S. Navy. 'The U.S. is not building enough submarines as per its own needs. And in the U.S. shipbuilding industry, the increase that's needed to produce for its own needs, let alone have the additional capacity to hand over Virginia-class submarines to Australia, that is a well-known problem,' said Nishank Motwani, a Washington-based analyst Australian Strategic Policy Institute (ASPI), a government-funded think tank. AUKUS includes a long-term goal for Australia to develop its own nuclear-powered submarines in the 2040s, with U.S.-made submarines to be sold to Australia in the interim, as soon as 2030. The agreement also encompasses extensive technological cooperation across other areas of defense, broadly aimed at countering China's growing influence in the Indo-Pacific. The review of AUKUS, first reported by the Financial Times on Wednesday, is being spearheaded by Undersecretary of Defense for Policy Elbridge Colby, who has previously voiced doubt about U.S. plans to sell nuclear-powered submarines (SSNs) to Australia, arguing that America's own fleet is insufficient amid the growing threat of Chinese military action in the Indo-Pacific. The Virginia-class submarines that Australia is set to receive — including an initial purchase of three, with the option to buy two more to bridge the gap before British-designed SSNs arrive in the 2040s — are already behind schedule, U.S. military officials say. Each vessel costs roughly $4.3 billion, and the U.S. Navy's goal of maintaining a 66-boat SSN fleet remains unmet, with the current force hovering around 50. The proposed sale of up to five submarines to Australia would set back the U.S. SSN force into the 2040s, according to estimates from the Congressional Research Service. To meet that demand, the Virginia-class program is aiming to produce two submarines a year by 2028 — and more than 2.3 annually in the years that follow to fulfill both U.S. and AUKUS requirements. But those targets remain distant. At an April hearing of the Senate Armed Services Committee's sea power subcommittee, Navy Rear Adm. Jonathan E. Rucker, the Navy's program executive officer for attack submarines, said 14 Virginia-class boats are currently under construction — and output is averaging just 1.13 per year. 'The main causes for this are workforce challenges, material and supplier delays and shipbuilder facilities and infrastructure issues — all of which are driving cost increases and schedule delays,' Rucker said. In a series of posts on the social media platform X late last year, Colby raised doubts about the viability of U.S. submarine sales to Australia, arguing that the American fleet is already stretched too thin to meet its own needs in the event of a Chinese invasion of Taiwan. 'In principle [AUKUS is] a great idea. But I've been very skeptical in practice,' he said. During his senate confirmation hearing in March, Colby expressed conditional support for the AUKUS submarine deal. 'If we can produce the attack submarines in sufficient number and sufficient speed, then great. But if we can't, that becomes a very difficult problem,' he said. In April, President Donald Trump signed a sweeping executive order aimed at reclaiming a share of the global shipbuilding industry from China — a daunting task. China controls more than half of the world's commercial ship production, driven by massive shipyards along its eastern coast. The United States, by contrast, accounts for less than 0.1 percent of global shipbuilding output. Lawmakers on both sides of the aisle have raised warnings that Beijing's dominance in commercial shipbuilding emboldens its naval forces. In April, the House Select Committee on the Chinese Communist Party praised the U.S. Trade representative's decision to investigate an alleged Chinese shipbuilding monopoly. Last July, former Deputy Secretary of State Kurt Campbell — who helped craft the AUKUS pact — called the gap between U.S. and Chinese shipbuilding capacity 'deeply concerning.' Democratic lawmakers have pushed back at the suggestion that unraveling the submarine pact would enhance U.S. readiness in the Indo Pacific, arguing that it would enhance — rather than diminish — America's strategic reach in the region. Part of the AUKUS agreement includes building infrastructure to support U.S. submarines in Australia. U.S. vessels have already begun a series of visits to pave the way for Submarine Rotational Force West, an AUKUS initiative that will see American submarines regularly rotate through a base in Western Australia. 'If this Administration is serious about countering the threat from China — like it has said as recently as this morning — then it will work expeditiously with our partners in Australia and the U.K. to strengthen this agreement and ensure we are taking steps to further boost our submarine industrial base,' said Sen. Tim Kaine (D-Virginia), who sits on the Senate Armed Services Committee, in a statement on Thursday. 'To walk away from all the sunk costs invested by our two closest allies — Australia and the United Kingdom — will have far-reaching ramifications on our trustworthiness on the global stage,' said Rep. Joe Courtney (D-Connecticut), top democrat on the House Seapower and Projection Forces Subcommittee. The review of the AUKUS pact comes amid tepid support for Australia's defense efforts among senior Trump administration defense officials, some of whom have expressed frustration with Canberra's military commitments. Australian officials on Thursday downplayed reports of the Pentagon review, emphasizing that AUKUS has received consistent bipartisan support in the U.S. and remains backed by the Trump administration. 'It is natural that the Administration would want to examine this major undertaking including progress and delivery, just as the UK Government recently concluded an AUKUS review and reaffirmed its support,' said Defense Minister Richard Marles in a statement. 'We look forward to continuing our close cooperation with the Trump Administration on this historic project,' he added. In a separate interview with Australia's ABC Radio, Marles said that he had been aware the project — launched in 2020 under former president Joe Biden — had been under review 'for some time.' Marles traveled to Washington in February to meet Hegseth, delivering a $798 million payment — the first installment of Australia's $4.78 billion commitment for the submarine deal. At the time, Hegseth said Trump was 'very supportive' of the deal. Since then, Hegseth has chafed at Australia's defense spending, urging the nation of 26 million to raise its military budget to at least 3.5 percent of GDP — up from roughly 2 percent — echoing earlier calls by Colby for a figure above 3 percent. Australian Prime Minister Anthony Albanese pushed back, insisting that Australia will set its own defense policy. Scrutiny of the U.S.-Australia defense partnership is intensifying ahead of next week's G-7 summit in Canada, where Albanese and Trump are expected to meet in person for the first time. The review also comes as China makes increasingly assertive moves at sea, pushing its naval presence deeper into waters near U.S. allies and expanding its reach far beyond its own shores. This week, Beijing deployed two aircraft carriers into waters near Japan for the first time — rattling Tokyo. Earlier this year, a Chinese flotilla of three warships conducted an unprecedented patrol through international waters off Australia's east coast, drawing a sharp rebuke from the Australian government. 'Australia was made to feel very unsafe and threatened,' ASPI's Motwani said. 'Every day the reality is sinking in that [the delivery of AUKUS submarines] is still eight years away — best-case scenario.' Michael Miller in Sydney contributed to this report.
The Hill
an hour ago
- The Hill
In the Arizona desert, a farm raising fish raises questions about water use
DATELAND, Ariz. (AP) — Storks scatter, white against blue water, as Dan Mohring's pickup truck rumbles down the dirt road. He's towing a trailer full of ground-up beef, chicken, fish and nutrient bits behind him, ready to be shot out of a cannon into the ponds below. It's time to feed the fish. Mohring fires up the machine and the food flies out in a rainbow arc. Then the water comes alive. Hundreds of thrashing, gobbling barramundi wiggle their way to the surface, all fighting for a piece. Until, in a few months, they will become food themselves. In the desert of landlocked Arizona, where the Colorado River crisis has put water use under a microscope, Mainstream Aquaculture has a fish farm where it's growing the tropical species barramundi, also known as Asian sea bass, for American restaurants. Mainstream sees it as a sustainable alternative to ocean-caught seafood. They say chefs and conscious consumers like that the food has a shorter distance to travel, eliminating some of the pollution that comes from massive ships that move products around the world. And they and some aquaculture experts argue it's efficient to use the water twice, since the nutrient-rich leftovers can irrigate crops like Bermuda grass sold for livestock feed. 'We're in the business of water,' said Matt Mangan, head of Australia-based Mainstream's American business. 'We want to be here in 20 years', 30 years' time.' But some experts question whether growing fish on a large scale in an arid region can work without high environmental costs. That question comes down to what people collectively decide is a good use of water. In Arizona, some places manage water more aggressively than others. But the whole state is dealing with the impacts of climate change, which is making the region drier and water only more precious. The farm uses groundwater, not Colorado River water. It's a nonrenewable resource, and like mining, different people and industries have different philosophies about whether it should be extracted. 'As long as groundwater is treated as an open resource in these rural parts of Arizona, they're susceptible to new industries coming in and using the groundwater for that industry,' said Sarah Porter, director of the Kyl Center for Water Policy at Arizona State University's Morrison Institute. Some scientists believe aquaculture can play a role in protecting wild ocean ecosystems from overfishing. And it might play at least a small role in smoothing any supply problems that result from the Trump administration's tariffs on imports from dozens of countries, including those that send the U.S. about 80% of its seafood, per the United States Department of Agriculture. In the greenhouses at University of Arizona professor Kevin Fitzsimmons' lab in Tucson, tilapia circle idly in tanks that filter down into tubs full of mussels and floating patches of collard greens and lettuce. Fitzsimmons mentored the student who started the tilapia farm eventually bought by Mainstream about three years ago where they now raise barramundi. 'I don't think desert agriculture is going away,' he said. 'Obviously, we want to do it as water-efficient as possible.' But not everyone agrees it's possible. 'Artificial ponds in the desert are stupid,' said Jay Famiglietti, a professor at ASU and director of science for the Arizona Water Innovation Initiative. He worried about heavy water losses to evaporation. Mangan says that evaporation hasn't been an issue so much as the loss of heat in the wintertime. That has required pumping more water since its warmth when it arrives at the surface helps keep the barramundi cozy. But Mangan says they've been improving pond design to retain heat better and have found, after the last year of research and development, that they can cut their water requirement by about half as a result. Plus, he argues, the water coming out of the fish ponds is 'essentially liquid fertilizer,' and though it's slightly salty, they use it for crops that can tolerate it, like Bermuda grass dairy cows can eat. But that's supporting the cattle industry, which contributes more than its share of planet-warming greenhouse gas emissions, Famiglietti said. 'Doing two suboptimal things doesn't make it better,' he said. Purple flowers sprout alongside paddle wheels. Fish bones crunch underfoot. The faint odor of brackish water and ammonia catches in the breeze. Without groundwater, none of it would be possible. Some farmers in Arizona rely on water from the Colorado River, but many others use well water to irrigate crops like alfalfa for the dairy industry or the lettuce, cucumbers and melons shipped nationwide year-round. Arizona has seven areas around the state where groundwater is rigorously managed. Dateland doesn't fall into one of those, so the only rule that really governs it is a law saying if you land own there, you can pump a 'reasonable' amount of groundwater, said Rhett Larson, who teaches water law at ASU. What might be considered 'reasonable' depends from crop to crop, and there's really no precedent for aquaculture, an industry that hasn't yet spread commercially statewide. Using numbers provided by Mainstream, Porter calculated that the fish farm would demand a 'very large amount' of water, on par with a big ranch or potentially even more than some suburbs of Phoenix. And she noted that although the water use is being maximized by using it twice, it's still depleting the aquifer. When the company scoped out Arizona to expand, Mangan said they didn't see nearly the same kinds of regulations as back in Australia. As part of its growth strategy, Mainstream is also hoping to work with other farmers in the area so more can use nutrient-rich fish pond wastewater to produce hay. They say a few have expressed interest. The seafood industry needs to reduce its reliance on catching small wild fish to feed bigger farmed ones that humans eat, said Pallab Sarker, an assistant professor at the University of California, Santa Cruz, who studies sustainability in the aquaculture industry. He said seabirds and mammals rely on small species like anchovies and mackerel commonly used in fish meal. 'We should not rely on ocean fish to grow fish for aquaculture to meet the demand for humans,' Sarker said. Mainstream gets its fish feed from two suppliers, Skretting and Star Milling, but Mangan and Mohring said they didn't know for certain where those suppliers got their base ingredients from. Fitzsimmons, of the University of Arizona, also pointed out that between pollution, overfishing and oceanfront development for recreation, the commercial fishing industry had already been facing problems. He doesn't think that Trump's moves this spring to open up marine protected areas for commercial fishing will improve that situation the way aquaculture could. 'We can't keep hunting and gathering from the ocean,' Fitzsimmons said. ___ Follow Melina Walling on X @MelinaWalling and Bluesky @ Follow Joshua A. Bickel on Instagram, Bluesky and X @joshuabickel. Follow Annika Hammerschlag on Instagram @ahammergram. ___ The Associated Press' climate and environmental coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP's standards for working with philanthropies, a list of supporters and funded coverage areas at
Indianapolis Star
3 hours ago
- Indianapolis Star
Apartment complex, Topgolf-style clubhouse, planned at Gray Eagle Golf Course
A long-dormant plan for an apartment complex and clubhouse with two-level driving range at Gray Eagle Golf Club appears ready to tee off. The Fishers City Council was scheduled to consider an economic development agreement with builder J.C. Hart that would provide up to $7.75 million from the city for construction costs at 126th Street and Brooks School Road, a plan first announced in 2021. A hearing is set for June 16 at Fishers City Hall and Art Center. J.C. Hart wants to build a $50 million, 151-unit rental complex aimed at people 55 and older in a combination of apartments, townhouses, and cottage homes. The project will have a pool, pickleball and bocce ball courts, a clubhouse with an exercise room and lounge. J.C. Hart Senior Vice President of Development Todd May said the project is geared toward older residents but not restricted to them. 'The layout of the homes are meant to appeal to them,' May said, citing first-floor master bedrooms in the townhomes as an example. When the development was planned five years ago, that appeal also included pickleball courts, he joked. "Now everyone plays pickleball,' he said. 'This has been a long, long process.' The development will be a 3-story apartment building with 101 units and 48 cottage-style homes or townhouses. The golf clubhouse will be rebuilt with a 28,000-square-foot restaurant attached to the driving range with multi-story netting to catch balls, similar to a Topgolf layout, May said. A practice green, bathrooms, and improved irrigation and drainage systems will be added to the course. The city will issue bonds to help mostly with infrastructure improvements. They will be paid over 25 years by property taxes collected from the apartment and clubhouse through a special Tax Increment Financing District. May said the delay was because it took longer than expected to secure a loan for the project. Possible tenants, he said, have been lining up anyway. 'We have a long list of people waiting to reserve a unit,' he said. 'There is a real demand in Fishes for something like this.' May said the wait was worth it because it saved the golf course. Gray Eagle owner RN Thompson wanted to close the course in 2018 because it was losing money and too expensive to keep repairing. Instead, Thompson planned to replace the course with housing. Residents in subdivisions on the course fought to save it and various projects were proposed but rejected before J.C. Hart and Thompson agreed on this one, with the city's assistance. 'We worked hand-in-hand with the residents on this development and I'm excited to see this project continue to move forward,' Fishers Mayor Scott Fadness said in a written statement. 'This will bring even more vibrancy to this area while preserving its long-term sustainability.'
