Latest news with #AMAgenda
Sky News AU
3 days ago
- Business
- 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.
Sky News AU
6 days ago
- Business
- Sky News AU
Labor's ‘appalling' super tax changes to hit franking credit refunds, Reliance Auditing Services' Naz Randeria declares
Labor's 'appalling' proposed super tax change will hit franking credits, a leading accountant has warned as the re-elected Albanese government sits in striking distance of legislating the controversial proposal. The government is looking to double the tax rate on funds in super accounts above $3 million and also capture unrealised gains on assets. This means Aussies pay tax on the increase in assets within their super account above this threshold – such as properties, shares or farms – despite not reaping the paper gain from it. It also means franking credits in super fund, that are issued to avoid double taxation, will be hit by Labor's tax as it captures the increase in value of all money above the threshold in an account. Reliance Auditing Services' managing director Naz Randeria dived into how the changes will impact franking credits during an appearance on Sky News' AM Agenda. 'Franking credits are due to the taxes paid by the companies and we avoid double taxation,' Ms Randeria told host Laura Jayes. 'So you get these credits back on your tax return and people will get those refunds. 'But the way this Division 296 tax works is once the franking credits are received, it goes towards the member balance. It is credited to the account of the member balance. So it becomes a part of the net earnings. 'Now the earnings in the member balance will include unrealised capital gains, the cash income that is received and also the franking credits.' She tore into the proposed tax which has taken the spotlight since Labor's sweeping victory. 'It is ridiculous,' Ms Randeria said. 'This is a tax on a tax refund and it's something I've realised once I've actually sat down to do the calculations. 'It is appalling.' Franking credits, along with the mandatory superannuation scheme, were introduced under Paul Keating's government to eliminate double taxation on company profits. The credits were extended under the Howard government to ensure those who pay no income tax could also reap tax-backs under the scheme. Labor attempted to end this in 2019, however, it backfired and played a significant role in former leader Bill Shorten's election loss. The proposed super tax has stirred uproar amongst economists and investors who warn targeting unrealised gains will hurt small businesses and startups in Australia. Wilson Asset Management's founder Geoff Wilson, who spearheaded the attack against Mr Shorten's proposed changes in 2019, warned investment will tighten under the change. 'People will move away from taking risks. They'll restructure their investments. It could be more money into the family home or their children's homes or their primary place of residence or their grandchildren's homes," Mr Wilson told 'More money away from risk capital and supporting corporate Australia - small and medium-sized companies in corporate Australia. It's the lifeblood of Australia.' After Labor's sweeping election victory, the Albanese government now only needs the support of the Greens to get the super tax legislation through the Senate. The Greens called for the threshold to be lowered to $2m, but indexed over time.
Sky News AU
22-05-2025
- Business
- Sky News AU
Prime Minister Anthony Albanese to deliver keynote address at Sky News event as cost-of-living crisis dominates Australian economic agenda
Following his historic re-election that secured Labor a record number of seats, the Prime Minister of Australia, The Hon Anthony Albanese MP, will deliver the keynote address at the fourth annual Australia's Economic Outlook. Presented by Sky News and The Australian, the highly sought-after business luncheon will be held on Friday 4 July 2025 at Crown Sydney. The Prime Minister will outline his immediate priorities and long-term economic strategies to ensure a thriving future for the nation. He will then join Sky News Political Editor Andrew Clennell for a wide-ranging discussion to unpack the most topical business and economic issues, including the impact of the Federal Government's cost-of-living relief measures, and how its renewable energy transition plans will fare on business and households, international trade tariffs and more. Secure your tickets to Australia's Economic Outlook event, to be held on July 4 at Crown Sydney, here. On Friday 4 July at 12.30pm AEST, Sky News and The Australian present the fourth annual Australia's Economic Outlook business luncheon featuring special guest The Hon Anthony Albanese MP, Prime Minister of Australia. Keynote speech by Prime Minister Anthony Albanese Following the Labor Government's recent re-election and entering his second term as Australia's Prime Minister, Anthony Albanese will deliver a keynote address sharing his government's plan for Australia's future prosperity. This is the third time that Prime Minister Anthony Albanese takes to the stage at Sky News Australia's flagship annual economic outlook event. Anthony Albanese was sworn in as Australia's 31st Prime Minister on 23 May 2022. He previously served as Deputy Prime Minister and Leader of the House of Representatives. As Infrastructure Minister and Communications Minister, he delivered nation-building projects, connecting the country through thousands of kilometres of roads and rail, and rolling out the high-speed fibre National Broadband Network. Anthony was first elected to the Australian Parliament as the member for the Sydney seat of Grayndler in 1996. In 2019, he was unanimously elected as the Leader of the Australian Labor Party. He will then join Sky News Political Editor Andrew Clennell for a wide-ranging discussion on the country's economic prospects and legislative agenda. The event will include some of the biggest names in business as they discuss current and future economic trends and the challenges and pathways to maintain and grow our nation's fiscal health. Secure your tickets to Australia's Economic Outlook event, to be held on July 4 at Crown Sydney, here. Meet your hosts Australia's Economic Outlook will feature a line-up of political and business experts, including Sky News Political Editor Andrew Clennell, Sky News Business Editor Ross Greenwood, Associate editor of The Australian Eric Johnson, and host of Sky News' AM Agenda Laura Jayes. More information about Australia's Economic Outlook 2025 Following his historic re-election that secured Labor a record number of seats, the Prime Minister of Australia, The Hon Anthony Albanese MP, will deliver the keynote address at the fourth annual Australia's Economic Outlook. Presented by Sky News and The Australian, the highly sought-after business luncheon will be held on Friday 4 July 2025 at Crown Sydney. The Prime Minister will outline his immediate priorities and long-term economic strategies to ensure a thriving future for the nation. He will then join Sky News Political Editor Andrew Clennell for a wide-ranging discussion to unpack the most topical business and economic issues, including the impact of the Federal Government's cost-of-living relief measures, and how its renewable energy transition plans will fare on business and households, international trade tariffs and more. Paul Whittaker, Chief Executive Officer of Sky News Australia said: 'Following the Albanese Government's resounding second term win, we are honoured to welcome back Prime Minister Anthony Albanese to the Australia's Economic Outlook event. 'Much was promised during the election campaign, from tax cuts for all Australians, to an $8.5 billion boost to Medicare, and a doubling down on the transition to renewable energy. While the recent RBA announcement of the year's second interest rate cut, reducing the official cash rate to its lowest level in two years, is welcome relief for homeowners amid easing inflation, Australia's economic growth continues to be sluggish, as the national debt soars to record levels. The crucial Australia's Economic Outlook will bring together business and political decision-makers to discuss these challenges and determine whether the outlook points to decades of deficits, or if the government's economic vision will lead to greater prosperity.' Secure your tickets to Australia's Economic Outlook event, to be held on July 4 at Crown Sydney, here. Michelle Gunn, Editor-in-Chief of The Australian added: 'With the Prime Minister outlining his government's agenda following a historic election win, this year's event promises to be one of the most compelling yet. 'The Australian is proud to partner with Sky News to provide an unmissable platform for meaningful debate at a pivotal moment for the country's economy.' The event will be hosted by leading political journalist and Sky News' AM Agenda anchor Laura Jayes, and feature business and political panels steered by The Australian's Associate Editor Eric Johnston and Sky News Business Editor Ross Greenwood. Further details regarding the line-up of speakers, including business experts and political leaders, joining the discussion panels will be announced in the coming weeks. With thanks to our sponsors Australia's Economic Outlook is presented by Crown and Uber, and supported by TechnologyOne. Presenting partners Supported by Catch up on last year's Australian Economic Outlook event Sky News hosts the Hon Anthony Albanese, Deputy Governor of the RBA, Andrew Hauser and leaders from Australian business for the 2024 Australia's Economic Outlook event at the Crown Sydney. Terms and Conditions Ticket sales for this event are facilitated by Eventbrite, Inc., a company who is engaged by Sky News Australia (Australian News Channel Pty Ltd) for the sale of tickets to Sky News Australia events. By clicking 'Book Now', you will be redirected to the Eventbrite, Inc. website where you will be asked to enter your personal information as the purchaser of a ticket, including your first name, last name, email and mobile. If you purchase more than 1 ticket, the personal information of your guest who may or may not hold a current subscription with Nationwide News Pty Ltd is required to complete the purchase. You are required to receive prior permission and consent from your guest to disclose their personal information, including their first name, last name, email and mobile to Eventbrite, Inc. for the purpose of purchasing tickets to the event in their name. You also consent for Eventbrite, Inc. to disclose you and your guest/s personal information to Sky News Australia (Australian News Channel Pty Ltd) and Nationwide News Pty Ltd for the purpose of managing attendance/guest lists for the event, and consent for any associated communications about the event such as distribution of ticket/s, reminder, change or cancellation notifications via email, sms or phone to be sent to you and your guest/s. In dealing with Eventbrite, Inc. you are likely to have to agree to their privacy policy and terms and conditions. For further details about the Eventbrite, Inc. privacy policy, click here, and terms of service, click here. You are responsible for your ticket and your attendance at the event. If you are unable to attend the event for any reason there will be no refund payable for your ticket other than as provided for below or where required under the Australian Consumer Law. If Australian News Channel Pty Ltd is required to reschedule the event for any reason your ticket will be automatically transferred to the rescheduled dates. If you are unable to attend on the rescheduled dates you may be entitled to a credit note. Should you be provided with a credit note at the discretion of Australian News Channel Pty Ltd, that credit note is valid for the specified amount of tickets, and not the equivalent monetary value. Should Australian News Channel Pty Ltd be unable to offer, deliver or fulfil any engagement within 12 months, you will be entitled to a full refund. You must abide by the Conditions of Entry of Crown Sydney (which are found here along with its dress code (which is found here and rules and policies (which is found here Your entry to the venue and the event will be at the discretion of Australian News Channel Pty Ltd and Crown Sydney. No aggressive or disruptive conduct, whether physical or verbal will be tolerated. If you are disruptive (or there is a risk you may be disruptive), fail to abide by the aforementioned Conditions of Entry or any direction of a Crown Sydney or Australian News Channel Pty Ltd representative while at the venue then you may at their discretion be denied entry to the venue/event, or be removed from the venue/event. By purchasing a ticket, you agree to receive marketing and communications from Sky News Australia (Australian News Channel Pty Ltd) and The Australian (Nationwide News Pty Limited), and their Commercial Partners. The personal information that is collected may be used for this purpose. How and what we do with your personal information is set out in our privacy policy available at Filming of the event will take place and it is a condition of entry to the event that you consent to being filmed. Footage of the event may be used by Australian News Channel Pty Ltd and its licensees in broadcasts and publications in any media or format throughout the world. A discount or promotional code is valid for the purchase of one ticket only by the person to whom the code is sent. It is not transferrable and must not be used for the purpose of purchasing additional tickets.
Sky News AU
21-05-2025
- Business
- Sky News AU
Jacinta Allan 'more responsible than Daniel Andrews' for Victoria's financial state, Brad Battin says with net debt set to soar to almost $200 billion
Premier Jacinta Allan is more responsible for Victoria's debt-laden state than her predecessor Daniel Andrews, according to state Opposition Leader Brad Battin. The Victorian state budget released on Tuesday revealed net debt is set to soar to almost $200 billion over the forward estimates, with no reduction on the horizon. Net debt rapidly spiralled in the latter years of Mr Andrews' premiership amid the pandemic, coming in at $44.3 billion in 2019-20, before rising to $133.2 billion four years later which included the period when Ms Allan took over as leader. In the 2014-15 financial year, which included the first six months of Mr Andrews' time as premier, Victoria's net debt was $22.3 billion. But Mr Battin told Sky News Australia on Wednesday Ms Allan was not handed a poisoned chalice by Mr Andrews as she had been a key ministerial player in his government, including in the portfolios of transport infrastructure and major projects. "Jacinta Allan was working hand in hand with Daniel Andrews for the past decade of debt and deception across the state," he told AM Agenda host Laura Jayes. "She's been involved in every state budget, she's been a senior minister and in charge of the major projects across Victoria prior to becoming Premier. "So in actual fact, I'd probably say she's more responsible than Daniel Andrews for the outcomes we're seeing today." Net debt is expected to be $155.5 billion this financial year, then $167.6 billion in 2025-26, before reaching $194 billion in 2028-29. The net debt to gross state product ratio will peak at 25.2 per cent in 2026-27, dipping back slightly to 24.9 per cent in 2028-29. In 2014-15 it was 6.2 per cent. The state's interest bill will be $6.8 billion this financial year, and in 2028-29 the government is expecting it will have to shell out $10.5 billion on interest. Mr Battin said that if he wins the state election in November next year, he will look to make cuts to government waste to "save billions of dollars". "We won't have to go deeper into the red," he said. "There is so much waste within this government. We've seen $48 billion in cost overruns from projects. "But when we look at some of the projects with the CFMEU in them, we've already had reports from the government's own hands that 30 cents in every dollar is ending up in the hands of bikies and corruption. "So there's plenty of cuts we can make there to save billions of dollars when it comes to the waste that this government's got." Mr Battin said between now and the next election "we have to go through what our budget commitments are... to grow the economy, to ensure that we can tax fairer across the whole system, but more importantly ensuring that people understand that we are good economic managers". The opposition on Tuesday vowed the scrap Labor's Emergency Services Property Levy, which has attracted fierce criticism in the regions and sparked protests outside parliament.
Sky News AU
13-05-2025
- Politics
- Sky News AU
‘Big moment': Sussan Ley wins Liberal Party leadership contest
Sky News AM Agenda host Laura Jayes says it is a 'big moment' as Sussan Ley has become the first woman to lead the federal Liberal Party after having defeated rival candidate Angus Taylor in a tightly contested leadership ballot. Ms Ley won the ballot on Tuesday after stepping up from deputy leader following former leader Peter Dutton's ousting from the parliament. She won 29 of the partyroom votes compared to 25 in favour of Angus Taylor.
