Australia's Luxury Car Tax could be removed gradually
But the proposed abolition of the LCT has been met with criticism from at least one of Labor's opponents, on the basis the government would be removing a tax from more expensive vehicles while also getting ready to impose penalties on brands that sell more popular, higher-emitting vehicles such as utes and SUVs as part of its New Vehicle Efficiency Standard (NVES).
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Sky News AU
an hour ago
- Sky News AU
'Where is Jim Chalmers': Coalition accuses Treasurer of going into 'hiding' as opposition to unrealised gains tax ramps up
The federal Coalition has accused Treasurer Jim Chalmers of 'hiding' from media scrutiny amid growing opposition to Labor's plans to tax unrealised gains in superannuation accounts. The Albanese government has proposed doubling the tax on superannuation accounts with a balance over $3 million. The tax would also apply to unrealised capital gains, which critics claim will set a dangerous precedent as it taxes perceived wealth rather than actual income. The legislation has also raised questions about fairness, with Employment and Workplace Relations Minister Amanda Rishworth admitting on Sunday that politicians on defined benefit schemes – such as Prime Minister Anthony Albanese - will be 'treated differently'. Speaking to Sky News Australia on Monday, newly appointed shadow finance minister James Paterson questioned why the Treasurer was leaving it to other ministers to explain his policy. 'I've got to ask the question… where is Jim Chalmers? He's barely been seen or heard from since the election,' Senator Paterson said. 'He's letting other ministers like Amanda Rishworth front the Sunday shows to try to explain his complicated and confused and contradictory policy, and he's in hiding.' Senator Paterson said different treatment for politicians grandfathered into the now-abolished defined benefits pension scheme showed how the legislation was going to be a 'mess to legislate and to implement and to administer'. 'I think he should front up today and explain the rationale for this dodgy exemption that he's given his boss and whether or not Anthony Albanese participated in the decision to grant that exemption,' he said. The legislation for the new tax scheme was introduced in 2023 and has already passed the lower house of parliament. The Coalition has come out strongly against certain elements in the proposal, specifically the tax on unrealised capital gains and indexation of the threshold. However, shadow treasurer Ted O'Brien and the shadow finance minister have flagged there is scope for a deal with the Coalition. Mr O'Brien told The Australian the opposition was willing to engage with Labor on the proposed super changes if the government ditches the two controversial elements. Yet the tax barely featured a mention during the last election campaign – a fact many Liberals are citing as one reason for the Coalition's historic election defeat. On Monday, Senator Paterson admitted that under the leadership of Peter Dutton, the Coalition had failed to put forward an economic platform which was consistent with Liberal values. 'We must be consistent with our values,' he said. 'I think our values are timeless and that past elections have earned the overwhelming support of the Australian people, but some of the policies that we took to the last election were inconsistent with those values.' The Victorian Senator pointed to the decision to oppose Labor's tax cuts as one major error. 'Even though Labor's tax cut was meagre and miserly and wouldn't have made much of a difference, it doesn't matter. The Liberal Party should never oppose a tax cut,' the shadow finance minister said. 'We should never go to an election proposing to increase taxes. And we should never allow Labor to make the audacious claim that they are the party of lower taxes. 'That is core to who we are. It is core to our DNA as a Liberal Party and our National Party colleagues as well. 'And in the next election, we must take a bold, ambitious economic policy that gives people hope for the future. That gives people the hope that their lives and their personal circumstances will be better off if they vote Liberal and National.'
Perth Now
2 hours ago
- Perth Now
Farmers hit by disasters to get financial counselling
Disaster-stricken farmers will be able to access free financial counselling, as the prime minister warns of more extreme weather events. The federal government will commit an extra $2 million to the Rural Financial Counselling Service to allow them to hire more staff and deliver increased support to farmers on the ground. While some in south-eastern Australia are battling historic droughts, those in NSW have been forced to contend with 'one-in-500 year' floods, putting significant strain on farmers across the country. Prime Minister Anthony Albanese acknowledged they were "doing it tough". "People put their heart and soul into their farms," he told reporters near Wasleys, north of Adelaide, on Monday. "Australia has always had droughts, we've always had flooding rains, and that has occurred throughout our history on this great continent that we're privileged to live on, but the truth is that there are more extreme weather events and they're more intense. "We need to adjust to that." The government has already promised $36 million to help farmers and producers prepare for, and respond to, drought conditions while expanding its disaster recovery allowance to more areas affected by floods. But Nationals Leader David Littleproud has called on Labor to bring back interest-free loans from the Regional Investment Corporation to help farmers experiencing hardship. The commitment, introduced by the coalition in 2020 according to Mr Littleproud, gave farmers access to a $2 million loan with an initial two-year interest-free period, then three years interest-only before five years principal and interest, offering breathing space and allowed them to restock and replant. Some members of his party have urged Australia to abandon its pursuit of net zero emissions by 2050. Mr Albanese said the science was clear about the increased frequency and ferocity of natural disasters. "Climate change is real and we need to respond to it," he said. "The science has been proven, unfortunately, to be playing out." Unusual weather has also continued to transform the east coast, with heavy fog and dust storms both blanketing Sydney in the span of one week. The prime minister maintained his government had a plan to deal with climate change, noting Australia's bid to co-host the United Nations's climate change conference with Pacific nations in 2026. Australia also remains on-track to meet its legislated 43 per cent emissions reduction target by 2030, according to Energy Minister Chris Bowen. But Labor has recently come under fire from environmental groups for giving gas giant Woodside the green light for its North West Shelf project to continue operating to 2070 as it could release 4.3 billion tonnes of greenhouse gas emissions over 50 years, the Australia Institute has found. Mr Bowen has said Woodside will be required to ensure the project meets net zero emissions by 2050.
Sky News AU
2 hours ago
- Sky News AU
Ditch unrealised gains tax, index threshold for Coalition to consider bipartisan support on super tax, shadow treasurer Ted O'Brien and James Paterson declare
Two leading Coalition ministers have called on Labor to scrap taxing unrealised gains and index the threshold in its controversial superannuation proposal if the opposition is to consider bipartisan support for the plan. The Albanese government's proposal to double the tax rate to 30 per cent on funds in super accounts above $3 million has drawn backlash over plans to hit unrealised gains and maintain the threshold over time despite inflation pushing more Aussies into the higher bracket. It has sparked fears for small business owners, farmers who hold properties in their self-managed super funds, and startup investors, who use SMSF's as an investment vehicle. The groups are are particularly concerned about paying tax on paper gains they have not realised. Newly appointed shadow finance minister James Paterson said the two controversial components of the bill were core reasons why the Coalition continues to oppose it. 'We're going to fight this every step in the way because we think it's wrong in principle,' Mr Paterson said on Sky News' AM Agenda. 'Unless the government was willing to walk away from the two key principles in this bill, which is taxing unrealised gains and failing to index the threshold, then there's no conceivable world in which we could support it. 'We're very proud to oppose it because we think it is bad tax law.' It follows shadow treasurer Ted O'Brien telling The Australian the opposition is willing to engage with Labor on the proposed super changes if the government ditches the two controversial elements. 'We will be constructive, but (Treasurer) Jim Chalmers has to be prepared to change his direction on this,' Mr O'Brien said. 'What is being put forward really does breach a red line in taxing unrealised capital gains. 'But if Jim Chalmers is prepared to be humble for a moment and realise he's made a mistake and wishes to engage with me, my door is open.' The Coalition's call for negotiation on the super tax comes as Labor needs only the Greens' support in the senate to legislate the change. The Greens expressed support for taxing unrealised gains but urged Labor to lower the threshold to $2m but index this with inflation. Labor's plan will hit more people than the Greens' counterproposal over the long term, according to the Australian Financial Review. The Greens' lowered threshold would immediately capture an extra 16,000 taxpayers in the first year but would hit less Aussies after about 16 years. Mr Chalmers has claimed the tax would initially only hit 80,000 Australians, however, Assistant Treasurer Danile Mulino conceded about 1.2 million, or 10 per cent of taxpayers, will face the tax within 30 years. Leading fund manager and Wilson Asset Management founder Geoff Wilson supports the Greens' call, but wants the threshold indexed well above the rate of inflation. 'With the Greens indexing it to the CPI (consumer price index), the risk there is young people are going to be significantly disadvantaged again because superannuation (is something) you effectively invest in assets,' Mr Wilson told in May. 'What it would make sense for them to be looking at is growth in asset prices, which runs at probably double, if not more, than the CPI growth. 'If you want young people not to be disadvantaged, that's what you need to do.' Modelling by AMP deputy chief economist Diana Mousina shows a 22-year-old on an average income would breach the $3m threshold by the time they turn 62. She took to LinkedIn last month with a diagram showing how an Aussie earning a three per cent annual wage growth and receiving the 12 per cent super guarantee would breach the threshold. Ms Mousina also told Sky News her diagram may have even underestimated how quickly the 22-year-old's super account would hit $3m. 'Average super returns have been about nine per cent in Australia in the last 30 to 40 years and I'm using assumptions closer to six per cent,' she said. On plans to hit unrealised gains, Mr Wilson said this would impact the 'lifeblood of Australia' as people would restructure their investments away from risk. He also warned it could 'destroy innovation' and entrepreneurialism as a large amount of investment into technology start-ups comes from self-managed super funds.
