Farmers fear big tax bills could force them to sell off their land
Farmers could be stuck with unaffordable bills under Treasurer Jim Chalmers' proposed tax for self-managed superannuation funds, as the agriculture sector warns that rural landowners who own valuable land would struggle to generate enough profit to pay their debts.
The tax is set to take effect from July with a 30 per cent tax rate on earnings for the portion above $3 million in a super fund.
However, the Albanese government needs support from either the Greens or the opposition in the Senate to enact its reform, and farmers are demanding a rethink of the policy's design.
Controversially for farmers, Chalmers' tax will also apply to unrealised capital gains above $3 million, which represents a doubling of the current 15 per cent tax rate for superannuation earnings.
Many older farmers have placed their farms in a self-managed super fund and lease it to their children, which generates retirement income for their parents while the younger generation can build businesses.
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National Farmers Federation president David Jochinke said many farmers would not be able to pay the increased tax bill.
He argued that the value of rural land, which has grown steadily for decades and shot up recently, did not necessarily reflect the earning capacity of a farming operation, as a high proportion of revenue is often gobbled up by costs.
'Taxing something that has only paper value, and no relation to your ability to pay that tax, is flawed. Farms will be sold and generations of farming discontinued purely on this decision,' Jochinke said.
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The Age
4 hours ago
- The Age
‘Progressive patriot' prime minister faces his call to arms
'In today's Australia, the new default should be that patriotism is a love of country that is democratic and egalitarian. It is something that includes those of different races and backgrounds,' he wrote in this masthead a couple of weeks ago. 'With his political authority unquestioned, Albanese has an opportunity to craft a nation-building agenda. The significance is more than just national. At the moment, parties of the centre-left are struggling to find compelling alternatives to Trumpist populism.' Albanese's defiance of America doesn't come out of nowhere. It rings a Labor bell. It resonates with the decision by Labor's celebrated wartime leader, John Curtin, to defy Australia's great and powerful friend of his time, Britain. 'I'm conscious about the leadership of John Curtin, choosing to stand up to Winston Churchill and say, 'No, I'm bringing the Australian troops home to defend our own continent, we're not going to just let it go',' Albanese said last year as he prepared to walk the Kokoda Track, where Australia and Papua New Guinea halted Imperial Japan's southward march of conquest in World War II. Defiance of allies is one thing. Defeat of the enemy is another. In a moment of truth-telling, the Chief of the Defence Force, Admiral David Johnston, this week said that Australia now had to plan to wage war from its own continental territory rather than preparing for war in far-off locations. 'We are having to reconsider Australia as a homeland from which we will conduct combat operations,' Johnston told a conference held by the Australian Strategic Policy Institute. 'That is a very different way – almost since the Second World War – of how we think of national resilience and preparedness. We may need to operate and conduct combat operations from this country.' He didn't spell it out, but he's evidently contemplating the possibility that China will cut off Australia's seaborne supply routes, either because it's waging war in the Taiwan Strait or South China Sea, or because it's seeking to coerce Australia. 'The chief of the defence force is speaking truth,' says Professor Peter Dean, co-author of the government's Defence Strategic Review, now at the US Studies Centre at Sydney University. 'There's a line in the Defence Strategic Review that most people overlook – it talks about 'the defence of Australia against potential threats arising from major power competition, including the prospect of conflict'. And there's only one major power posing a threat in our region.' History accelerates week by week. Trump, chaos factory, wantonly discards America's unique sources of power and abuses its allies. China's Xi Jinping and Russia's Vladimir Putin are emboldened, seeing America's credibility crumbling. British Prime Minister Keir Starmer, alarmed at the rising risks, this week declared a campaign to make Britain 'battle ready' to 'face down Russian aggression'. Loading Starmer plans to enlarge the army, commission up to a dozen new nuclear-powered submarines jointly built with Australia under AUKUS, build six new munitions factories, manufacture 7000 long-range weapons, renew the nuclear warheads on Britain's strategic missiles, and put new emphasis on drones and cyberwar as war evolves daily on the battlefields of Ukraine. Starmer intends to increase defence outlays to the equivalent of 2.5 per cent of GDP with an eventual target of 3 per cent. Ukraine's impressive drone strike on Russia's bombers this week knocked out a third of Moscow's force, with AI guiding the drones to their targets. The Australian retired major-general Mick Ryan observes that Ukraine and Russia are upgrading and adapting drone warfare weekly. 'The Australian government has worked hard to ignore these hard-earned lessons and these cheaper military solutions,' he wrote scathingly in this masthead this week, 'while building a dense bureaucracy in Canberra that innovative drone-makers in Australia cannot penetrate in any reasonable amount of time.' At the same time, the FBI charged two Chinese researchers with attempting to smuggle a toxic fungus into the US. It's banned because it can cause mass destruction of crops. A potential bioweapon, in other words. What would John Curtin do today? 'Curtin, like Albanese, was from the left of the Labor Party,' says Dean. 'He was not an internationalist, he was very domestic focused.' Indeed, he was an avowed Marxist who believed that capitalism was in its late phase and bound to fail, leading to world peace. He abandoned his idealism when confronted by the reality of World War II. 'He realised that a leader has to lead for his times. He had to bend his interests from the domestic sphere to the international.' Curtin famously wrote that, after Britain's 'impregnable fortress' of Singapore fell to the Japanese in just a few days, Australia looked to America as its great and powerful friend. 'Albanese can't repeat that,' observes Dean, 'because there's no one else to turn to.' 'A modern John Curtin,' says the head of the National Security College at ANU, Rory Medcalf, 'would take account of the strategic risk facing the unique multicultural democratic experiment of Australia. He'd unite the community and bring the trade unions, industry, the states and territories together in a national effort. 'It's certainly not about beating the drums of war, but we do need a much more open conversation about national preparedness. Australia might be directly involved in war, but, even if we aren't, we will be affected indirectly [by war to our north] because of risks to our fuel security, risks to the normal functioning of the economy and risks to the cohesion of our society. Is there scope to use national cabinet' – which includes the states and territories – 'to talk about these issues?' And the defence budget? Albanese is dismissive of calls to peg spending by set percentages of GDP. Apply that to any other area of the budget and you'd be laughed out of the room. The prime minister prefers to decide on capability that's needed, then to fund it accordingly. How big a gun do you need, then find money to pay for it. Medcalf endorses this approach of deciding capability before funding, but says that risk should come before both. 'And if you look at risk first, it will push spending well above 2 per cent of GDP and much closer to 3 or 4 per cent.' Regardless of what the Americans say or do. Do they turn out to be dependable but demanding? Or uselessly absent? 'Australia will need to spend more either way,' says Medcalf. 'The only future where we don't need to increase our security investment is one where we accept greatly reduced sovereignty in a China-dominated region.'
The Advertiser
9 hours ago
- The Advertiser
Budget blowout, $1b stadium and new ships sink premier
HOW JEREMY ROCKLIFF'S MINORITY LIBERAL GOVERNMENT WAS LEFT IN TATTERS ELECTORAL REFORM * On taking office in 2022, one of Mr Rockliff's first acts as Tasmanian premier was to back the return of a 35-seat House of Assembly, up from 25, to reduce the workload on ministers and MPs * Given Tasmania's Senate-like lower house, this made it easier for independents and Greens to win seats, producing a hung parliament at the 2024 election MINORITY MAYHEM * Mr Rockliff's Liberals suffered a 12 per cent swing against them at the 2024 poll but remained parliament's biggest party, with 14 MPs to Labor's 10 and the five Greens * To govern, Mr Rockliff signed deals with five other crossbenchers, including various promises he has struggled to fulfil, straining relationships SPIRITS SAGA * The biggest turbulence for the Rockliff government has been its botched replacement of Spirit of Tasmania ferries, the critical sea link to the mainland * Two Finland-built ships were due in 2024, but the new berth in Devonport won't be ready until 2026, with costs blowing out from $90 million to $495 million * Michael Ferguson took the fall, resigning as infrastructure minister in August and then, as a no-confidence motion loomed, as Treasurer in October AFL ASPIRATION * An Australian Rules state to its boots, Tasmania has always coveted a place in the AFL and got it in 2022 when a bid championed by former premier Peter Gutwein was realised by Mr Rockliff * The deal came with strings attached - the AFL will pay the least, but demands a roofed stadium close to the inner-city * The federal government does not pay as much as the state government, which also crucially, is on the hook for cost overruns - already into the hundreds of millions STADIUM STRUGGLES * The huge stadium project has drawn opposition, with some saying it's in the wrong spot, including Hobart City Council and the RSL, given the proximity to heritage and a nearby war memorial * Economists attack dubious return-on-investment projections; engineers doubt the feasibility of the Macquarie Point site, and those outside of Hobart feel it's an over-the-top investment, especially given the state's health and housing woes BUDGET BLOWOUT * The final straw - at least to Labor - was new Treasurer Guy Barnett's budget unveiled in May * The Liberals unveiled deficits as far as the eye could see and ballooning debt to $10 billion - a huge amount for a state of 550,000 people * The blowout drew huge criticism inside and outside parliament LABOR EMBOLDENED * The Labor opposition has suffered four election defeats in a row, the past three under Rebecca White, but has enjoyed a poll uptick under new leader Dean Winter * Mr Winter sees a government on the ropes and enough of the crossbench agree * Labor was emboldened by the huge support Tasmanians offered to candidates in the federal election, with four of the five seats now in Labor hands DEADLOCK BROKEN * After two days of debate, a vote on Mr Winter's motion of no confidence was finally taken * With the result locked at 17-17, Labor speaker Michelle O'Byrne cast a deciding vote with her party, ending Mr Rockliff's premiership * Mr Winter ruled out forming government in a deal with the Greens - without which Labor doesn't have the numbers - in effect making an election a certainty WHAT NEXT? * Parliament will resume to pass an emergency funding bill so essential government services can continue beyond July 1 * Once the bills pass both houses of parliament, Mr Rockliff says he will visit Governor Barbara Baker to call an election, likely in late July * There remains the prospect that Mr Rockliff - who is wedded to the stadium project - could depart as leader, allowing the Liberals a fresh chance to cobble together another minority government without an election, and perhaps the stadium HOW JEREMY ROCKLIFF'S MINORITY LIBERAL GOVERNMENT WAS LEFT IN TATTERS ELECTORAL REFORM * On taking office in 2022, one of Mr Rockliff's first acts as Tasmanian premier was to back the return of a 35-seat House of Assembly, up from 25, to reduce the workload on ministers and MPs * Given Tasmania's Senate-like lower house, this made it easier for independents and Greens to win seats, producing a hung parliament at the 2024 election MINORITY MAYHEM * Mr Rockliff's Liberals suffered a 12 per cent swing against them at the 2024 poll but remained parliament's biggest party, with 14 MPs to Labor's 10 and the five Greens * To govern, Mr Rockliff signed deals with five other crossbenchers, including various promises he has struggled to fulfil, straining relationships SPIRITS SAGA * The biggest turbulence for the Rockliff government has been its botched replacement of Spirit of Tasmania ferries, the critical sea link to the mainland * Two Finland-built ships were due in 2024, but the new berth in Devonport won't be ready until 2026, with costs blowing out from $90 million to $495 million * Michael Ferguson took the fall, resigning as infrastructure minister in August and then, as a no-confidence motion loomed, as Treasurer in October AFL ASPIRATION * An Australian Rules state to its boots, Tasmania has always coveted a place in the AFL and got it in 2022 when a bid championed by former premier Peter Gutwein was realised by Mr Rockliff * The deal came with strings attached - the AFL will pay the least, but demands a roofed stadium close to the inner-city * The federal government does not pay as much as the state government, which also crucially, is on the hook for cost overruns - already into the hundreds of millions STADIUM STRUGGLES * The huge stadium project has drawn opposition, with some saying it's in the wrong spot, including Hobart City Council and the RSL, given the proximity to heritage and a nearby war memorial * Economists attack dubious return-on-investment projections; engineers doubt the feasibility of the Macquarie Point site, and those outside of Hobart feel it's an over-the-top investment, especially given the state's health and housing woes BUDGET BLOWOUT * The final straw - at least to Labor - was new Treasurer Guy Barnett's budget unveiled in May * The Liberals unveiled deficits as far as the eye could see and ballooning debt to $10 billion - a huge amount for a state of 550,000 people * The blowout drew huge criticism inside and outside parliament LABOR EMBOLDENED * The Labor opposition has suffered four election defeats in a row, the past three under Rebecca White, but has enjoyed a poll uptick under new leader Dean Winter * Mr Winter sees a government on the ropes and enough of the crossbench agree * Labor was emboldened by the huge support Tasmanians offered to candidates in the federal election, with four of the five seats now in Labor hands DEADLOCK BROKEN * After two days of debate, a vote on Mr Winter's motion of no confidence was finally taken * With the result locked at 17-17, Labor speaker Michelle O'Byrne cast a deciding vote with her party, ending Mr Rockliff's premiership * Mr Winter ruled out forming government in a deal with the Greens - without which Labor doesn't have the numbers - in effect making an election a certainty WHAT NEXT? * Parliament will resume to pass an emergency funding bill so essential government services can continue beyond July 1 * Once the bills pass both houses of parliament, Mr Rockliff says he will visit Governor Barbara Baker to call an election, likely in late July * There remains the prospect that Mr Rockliff - who is wedded to the stadium project - could depart as leader, allowing the Liberals a fresh chance to cobble together another minority government without an election, and perhaps the stadium HOW JEREMY ROCKLIFF'S MINORITY LIBERAL GOVERNMENT WAS LEFT IN TATTERS ELECTORAL REFORM * On taking office in 2022, one of Mr Rockliff's first acts as Tasmanian premier was to back the return of a 35-seat House of Assembly, up from 25, to reduce the workload on ministers and MPs * Given Tasmania's Senate-like lower house, this made it easier for independents and Greens to win seats, producing a hung parliament at the 2024 election MINORITY MAYHEM * Mr Rockliff's Liberals suffered a 12 per cent swing against them at the 2024 poll but remained parliament's biggest party, with 14 MPs to Labor's 10 and the five Greens * To govern, Mr Rockliff signed deals with five other crossbenchers, including various promises he has struggled to fulfil, straining relationships SPIRITS SAGA * The biggest turbulence for the Rockliff government has been its botched replacement of Spirit of Tasmania ferries, the critical sea link to the mainland * Two Finland-built ships were due in 2024, but the new berth in Devonport won't be ready until 2026, with costs blowing out from $90 million to $495 million * Michael Ferguson took the fall, resigning as infrastructure minister in August and then, as a no-confidence motion loomed, as Treasurer in October AFL ASPIRATION * An Australian Rules state to its boots, Tasmania has always coveted a place in the AFL and got it in 2022 when a bid championed by former premier Peter Gutwein was realised by Mr Rockliff * The deal came with strings attached - the AFL will pay the least, but demands a roofed stadium close to the inner-city * The federal government does not pay as much as the state government, which also crucially, is on the hook for cost overruns - already into the hundreds of millions STADIUM STRUGGLES * The huge stadium project has drawn opposition, with some saying it's in the wrong spot, including Hobart City Council and the RSL, given the proximity to heritage and a nearby war memorial * Economists attack dubious return-on-investment projections; engineers doubt the feasibility of the Macquarie Point site, and those outside of Hobart feel it's an over-the-top investment, especially given the state's health and housing woes BUDGET BLOWOUT * The final straw - at least to Labor - was new Treasurer Guy Barnett's budget unveiled in May * The Liberals unveiled deficits as far as the eye could see and ballooning debt to $10 billion - a huge amount for a state of 550,000 people * The blowout drew huge criticism inside and outside parliament LABOR EMBOLDENED * The Labor opposition has suffered four election defeats in a row, the past three under Rebecca White, but has enjoyed a poll uptick under new leader Dean Winter * Mr Winter sees a government on the ropes and enough of the crossbench agree * Labor was emboldened by the huge support Tasmanians offered to candidates in the federal election, with four of the five seats now in Labor hands DEADLOCK BROKEN * After two days of debate, a vote on Mr Winter's motion of no confidence was finally taken * With the result locked at 17-17, Labor speaker Michelle O'Byrne cast a deciding vote with her party, ending Mr Rockliff's premiership * Mr Winter ruled out forming government in a deal with the Greens - without which Labor doesn't have the numbers - in effect making an election a certainty WHAT NEXT? * Parliament will resume to pass an emergency funding bill so essential government services can continue beyond July 1 * Once the bills pass both houses of parliament, Mr Rockliff says he will visit Governor Barbara Baker to call an election, likely in late July * There remains the prospect that Mr Rockliff - who is wedded to the stadium project - could depart as leader, allowing the Liberals a fresh chance to cobble together another minority government without an election, and perhaps the stadium HOW JEREMY ROCKLIFF'S MINORITY LIBERAL GOVERNMENT WAS LEFT IN TATTERS ELECTORAL REFORM * On taking office in 2022, one of Mr Rockliff's first acts as Tasmanian premier was to back the return of a 35-seat House of Assembly, up from 25, to reduce the workload on ministers and MPs * Given Tasmania's Senate-like lower house, this made it easier for independents and Greens to win seats, producing a hung parliament at the 2024 election MINORITY MAYHEM * Mr Rockliff's Liberals suffered a 12 per cent swing against them at the 2024 poll but remained parliament's biggest party, with 14 MPs to Labor's 10 and the five Greens * To govern, Mr Rockliff signed deals with five other crossbenchers, including various promises he has struggled to fulfil, straining relationships SPIRITS SAGA * The biggest turbulence for the Rockliff government has been its botched replacement of Spirit of Tasmania ferries, the critical sea link to the mainland * Two Finland-built ships were due in 2024, but the new berth in Devonport won't be ready until 2026, with costs blowing out from $90 million to $495 million * Michael Ferguson took the fall, resigning as infrastructure minister in August and then, as a no-confidence motion loomed, as Treasurer in October AFL ASPIRATION * An Australian Rules state to its boots, Tasmania has always coveted a place in the AFL and got it in 2022 when a bid championed by former premier Peter Gutwein was realised by Mr Rockliff * The deal came with strings attached - the AFL will pay the least, but demands a roofed stadium close to the inner-city * The federal government does not pay as much as the state government, which also crucially, is on the hook for cost overruns - already into the hundreds of millions STADIUM STRUGGLES * The huge stadium project has drawn opposition, with some saying it's in the wrong spot, including Hobart City Council and the RSL, given the proximity to heritage and a nearby war memorial * Economists attack dubious return-on-investment projections; engineers doubt the feasibility of the Macquarie Point site, and those outside of Hobart feel it's an over-the-top investment, especially given the state's health and housing woes BUDGET BLOWOUT * The final straw - at least to Labor - was new Treasurer Guy Barnett's budget unveiled in May * The Liberals unveiled deficits as far as the eye could see and ballooning debt to $10 billion - a huge amount for a state of 550,000 people * The blowout drew huge criticism inside and outside parliament LABOR EMBOLDENED * The Labor opposition has suffered four election defeats in a row, the past three under Rebecca White, but has enjoyed a poll uptick under new leader Dean Winter * Mr Winter sees a government on the ropes and enough of the crossbench agree * Labor was emboldened by the huge support Tasmanians offered to candidates in the federal election, with four of the five seats now in Labor hands DEADLOCK BROKEN * After two days of debate, a vote on Mr Winter's motion of no confidence was finally taken * With the result locked at 17-17, Labor speaker Michelle O'Byrne cast a deciding vote with her party, ending Mr Rockliff's premiership * Mr Winter ruled out forming government in a deal with the Greens - without which Labor doesn't have the numbers - in effect making an election a certainty WHAT NEXT? * Parliament will resume to pass an emergency funding bill so essential government services can continue beyond July 1 * Once the bills pass both houses of parliament, Mr Rockliff says he will visit Governor Barbara Baker to call an election, likely in late July * There remains the prospect that Mr Rockliff - who is wedded to the stadium project - could depart as leader, allowing the Liberals a fresh chance to cobble together another minority government without an election, and perhaps the stadium
Herald Sun
11 hours ago
- Herald Sun
‘We should not take a backwards step': Littleproud on Australian biosecurity laws
The National Party says Australia's biosecurity should not be used as a bargaining tool for the removal of US tariffs. The Albanese Government is reportedly considering amending rules, making it easier for the US to export beef to Australia, as long as it can be done safely. Last year, Australia sent almost 400,000 tonnes of beef to America, worth more than $4 billion. Nationals Leader David Littleproud says "we should not take a backwards step and concede biosecurity protocols that are protecting the agricultural industry".
