Latest news with #TedO'Brien
Sky News AU
2 days ago
- Business
- Sky News AU
'Grossly unfair': Coalition digs in against super tax as Albanese government and Greens to pass legislation
Shadow treasurer Ted O'Brien has confirmed the Coalition will oppose Labor's tax on superannuation balances above $3 million 'every step of the way'. Mr O'Brien officially confirmed the opposition's position on the 'grossly unfair' policy following potential negotiations on key aspects of the legislation. He told Sky News on Thursday that the Coalition had completed its internal processes and was now united in its decision to reject the legislation outright. 'We will definitely, as a Coalition, oppose this unfair super tax of Labor's every step of the way,' Mr O'Brien said. 'This is grossly unfair and it flies in the face of everything we believe in as a Coalition.' The Albanese government plans to double the tax rate on superannuation earnings for balances above $3 million, from 15 to 30 per cent. The proposal controversially includes unrealised capital gains and will not been indexed – two aspects the opposition previously said it may be willing to negotiate. Mr O'Brien has argued the government's decision to tax unrealised gains was unprecedented and dangerous. 'To think that a person can make a theoretical profit—no money has hit the bank account—and they get taxed every single year, that's not fair,' he said. 'Labor's super tax, it's super big, it's super bad. It flies in the face of what we believe as a Coalition. 'We believe in lower, simpler, fairer taxes. And Labor's tax on superannuation is none of those things.' He also warned that the refusal to index the threshold would expand the tax's reach over time, affecting millions of middle-income workers, such as teachers and nurses. AMP Deputy Chief Economist Diana Mousina conducted modelling that showed 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.' There has also been criticism about the fact politicians under the defined benefit pension scheme will not have to pay the tax until after they retire. Sky News also revealed recently that state officials on the old pension schemes are not expected to be taxed at all due to constitutional protections. Labor has argued the tax is a necessary reform to ensure the superannuation system is used for its intended purpose—funding retirements. Treasurer Jim Chalmers has said the measure is modest, fiscally responsible, and affects only a small proportion of high-balance accounts. The policy appears set to pass the senate with support from the Greens, who have pledged in-principle backing and are negotiating final details. Greens treasury spokesman Nick McKim has called for the threshold to be lowered to $2 million and indexed.
Sky News AU
2 days ago
- Politics
- Sky News AU
Coalition vows to oppose Labor's ‘grossly unfair' super tax
Deputy Opposition Leader Ted O'Brien officially announces the Coalition will oppose the Albanese government's proposed tax on superannuation balances over $3 million. 'What I can confirm with you today … we will definitely oppose this unfair super tax of Labor's every step of the way,' Mr O'Brien said. 'This is grossly unfair and flies in the face of everything we believe as a Coalition.'
The Advertiser
3 days ago
- Business
- The Advertiser
Super backlash 'doesn't augur well for tax reform'
The uproar over proposed changes to superannuation tax concessions does not bode well for the government's chances of passing broader tax reform, Treasurer Jim Chalmers says. First introduced two years ago, the plan would double the concessional tax rate to 30 per cent on the portion of superannuation balances above $3 million. The policy aims to limit high net-worth individuals from using superannuation as a tax reduction strategy rather than solely for their retirement, as intended. Over time, this has eroded the government's tax base and undermined the progressive nature of the tax system, with the wealthiest 10 per cent receiving 40 per cent of superannuation tax breaks. But a concerted campaign to kill the proposal, mounted in some sections the media since Labor's re-election in May, has turned up the heat on the government to change two contentious elements of the plan. Critics say the policy's introduction of a tax on unrealised capital gains goes against the fundamentals of the tax system and would have unintended consequences, such as driving investment off-shore and threatening Australia's financial stability. Unrealised gains are 'paper profits' - increases in the value of assets such as properties or shares that haven't been cashed in. Shadow treasurer Ted O'Brien said it would be a disaster for the economy. "When it comes to Labor's super tax, there is no reason to be anything but critical. It is an absolute disgrace," he said. In a full-throated defence of the policy, Dr Chalmers accused the coalition of acting in bad faith and simply wanting to shut down attempts to improve superannuation concessions rather than provide alternative proposals. "It doesn't augur well for bigger, broader tax reform, when such a modest and methodical change is being resisted in some quarters," he told reporters on Wednesday. People were lying if they claimed the prime minister or other federal politicians on defined benefits schemes would be exempt from the change, the treasurer said. The treasurer then took aim at those in the media that have amplified the claims, of which The Australian and The Australian Financial Review newspapers have been the biggest critics. "We should resist the temptation to think that because overwhelmingly two media outlets don't like this change, to assume that that concern is broadly and deeply felt in the Australian community," he said. "We're talking about half a per cent of people with superannuation being impacted, people with more than $3 million balances." The other sticking point is the government's decision not to index the $3 million threshold, meaning more people will get captured by the tax over time. The Greens support the legislation in principle but have called for the threshold to be lowered to $2 million and indexed in line with inflation. With the coalition seemingly dead against the plan, securing the support of the Greens is the government's best bet for getting it passed, given they hold sole balance of power in the upper house. Greens treasury spokesman Nick McKim said he looked forward to constructive discussions with the treasurer. The uproar over proposed changes to superannuation tax concessions does not bode well for the government's chances of passing broader tax reform, Treasurer Jim Chalmers says. First introduced two years ago, the plan would double the concessional tax rate to 30 per cent on the portion of superannuation balances above $3 million. The policy aims to limit high net-worth individuals from using superannuation as a tax reduction strategy rather than solely for their retirement, as intended. Over time, this has eroded the government's tax base and undermined the progressive nature of the tax system, with the wealthiest 10 per cent receiving 40 per cent of superannuation tax breaks. But a concerted campaign to kill the proposal, mounted in some sections the media since Labor's re-election in May, has turned up the heat on the government to change two contentious elements of the plan. Critics say the policy's introduction of a tax on unrealised capital gains goes against the fundamentals of the tax system and would have unintended consequences, such as driving investment off-shore and threatening Australia's financial stability. Unrealised gains are 'paper profits' - increases in the value of assets such as properties or shares that haven't been cashed in. Shadow treasurer Ted O'Brien said it would be a disaster for the economy. "When it comes to Labor's super tax, there is no reason to be anything but critical. It is an absolute disgrace," he said. In a full-throated defence of the policy, Dr Chalmers accused the coalition of acting in bad faith and simply wanting to shut down attempts to improve superannuation concessions rather than provide alternative proposals. "It doesn't augur well for bigger, broader tax reform, when such a modest and methodical change is being resisted in some quarters," he told reporters on Wednesday. People were lying if they claimed the prime minister or other federal politicians on defined benefits schemes would be exempt from the change, the treasurer said. The treasurer then took aim at those in the media that have amplified the claims, of which The Australian and The Australian Financial Review newspapers have been the biggest critics. "We should resist the temptation to think that because overwhelmingly two media outlets don't like this change, to assume that that concern is broadly and deeply felt in the Australian community," he said. "We're talking about half a per cent of people with superannuation being impacted, people with more than $3 million balances." The other sticking point is the government's decision not to index the $3 million threshold, meaning more people will get captured by the tax over time. The Greens support the legislation in principle but have called for the threshold to be lowered to $2 million and indexed in line with inflation. With the coalition seemingly dead against the plan, securing the support of the Greens is the government's best bet for getting it passed, given they hold sole balance of power in the upper house. Greens treasury spokesman Nick McKim said he looked forward to constructive discussions with the treasurer. The uproar over proposed changes to superannuation tax concessions does not bode well for the government's chances of passing broader tax reform, Treasurer Jim Chalmers says. First introduced two years ago, the plan would double the concessional tax rate to 30 per cent on the portion of superannuation balances above $3 million. The policy aims to limit high net-worth individuals from using superannuation as a tax reduction strategy rather than solely for their retirement, as intended. Over time, this has eroded the government's tax base and undermined the progressive nature of the tax system, with the wealthiest 10 per cent receiving 40 per cent of superannuation tax breaks. But a concerted campaign to kill the proposal, mounted in some sections the media since Labor's re-election in May, has turned up the heat on the government to change two contentious elements of the plan. Critics say the policy's introduction of a tax on unrealised capital gains goes against the fundamentals of the tax system and would have unintended consequences, such as driving investment off-shore and threatening Australia's financial stability. Unrealised gains are 'paper profits' - increases in the value of assets such as properties or shares that haven't been cashed in. Shadow treasurer Ted O'Brien said it would be a disaster for the economy. "When it comes to Labor's super tax, there is no reason to be anything but critical. It is an absolute disgrace," he said. In a full-throated defence of the policy, Dr Chalmers accused the coalition of acting in bad faith and simply wanting to shut down attempts to improve superannuation concessions rather than provide alternative proposals. "It doesn't augur well for bigger, broader tax reform, when such a modest and methodical change is being resisted in some quarters," he told reporters on Wednesday. People were lying if they claimed the prime minister or other federal politicians on defined benefits schemes would be exempt from the change, the treasurer said. The treasurer then took aim at those in the media that have amplified the claims, of which The Australian and The Australian Financial Review newspapers have been the biggest critics. "We should resist the temptation to think that because overwhelmingly two media outlets don't like this change, to assume that that concern is broadly and deeply felt in the Australian community," he said. "We're talking about half a per cent of people with superannuation being impacted, people with more than $3 million balances." The other sticking point is the government's decision not to index the $3 million threshold, meaning more people will get captured by the tax over time. The Greens support the legislation in principle but have called for the threshold to be lowered to $2 million and indexed in line with inflation. With the coalition seemingly dead against the plan, securing the support of the Greens is the government's best bet for getting it passed, given they hold sole balance of power in the upper house. Greens treasury spokesman Nick McKim said he looked forward to constructive discussions with the treasurer. The uproar over proposed changes to superannuation tax concessions does not bode well for the government's chances of passing broader tax reform, Treasurer Jim Chalmers says. First introduced two years ago, the plan would double the concessional tax rate to 30 per cent on the portion of superannuation balances above $3 million. The policy aims to limit high net-worth individuals from using superannuation as a tax reduction strategy rather than solely for their retirement, as intended. Over time, this has eroded the government's tax base and undermined the progressive nature of the tax system, with the wealthiest 10 per cent receiving 40 per cent of superannuation tax breaks. But a concerted campaign to kill the proposal, mounted in some sections the media since Labor's re-election in May, has turned up the heat on the government to change two contentious elements of the plan. Critics say the policy's introduction of a tax on unrealised capital gains goes against the fundamentals of the tax system and would have unintended consequences, such as driving investment off-shore and threatening Australia's financial stability. Unrealised gains are 'paper profits' - increases in the value of assets such as properties or shares that haven't been cashed in. Shadow treasurer Ted O'Brien said it would be a disaster for the economy. "When it comes to Labor's super tax, there is no reason to be anything but critical. It is an absolute disgrace," he said. In a full-throated defence of the policy, Dr Chalmers accused the coalition of acting in bad faith and simply wanting to shut down attempts to improve superannuation concessions rather than provide alternative proposals. "It doesn't augur well for bigger, broader tax reform, when such a modest and methodical change is being resisted in some quarters," he told reporters on Wednesday. People were lying if they claimed the prime minister or other federal politicians on defined benefits schemes would be exempt from the change, the treasurer said. The treasurer then took aim at those in the media that have amplified the claims, of which The Australian and The Australian Financial Review newspapers have been the biggest critics. "We should resist the temptation to think that because overwhelmingly two media outlets don't like this change, to assume that that concern is broadly and deeply felt in the Australian community," he said. "We're talking about half a per cent of people with superannuation being impacted, people with more than $3 million balances." The other sticking point is the government's decision not to index the $3 million threshold, meaning more people will get captured by the tax over time. The Greens support the legislation in principle but have called for the threshold to be lowered to $2 million and indexed in line with inflation. With the coalition seemingly dead against the plan, securing the support of the Greens is the government's best bet for getting it passed, given they hold sole balance of power in the upper house. Greens treasury spokesman Nick McKim said he looked forward to constructive discussions with the treasurer.
Sky News AU
3 days ago
- Business
- Sky News AU
'Un-Australian': Western Australia's $60 billion sweetheart GST deal safe under Coalition, despite massive budget blowout
The Coalition has confirmed it will not propose any changes to the controversial GST arrangement that disproportionately benefits Western Australia. It comes amid renewed calls from NSW, Queensland and Victoria to revisit the national carve up of GST revenue, which hands WA better services despite lower taxes. Shadow treasurer Ted O'Brien and shadow finance minister James Paterson told Sky News the Coalition's position would not change the existing arrangement. 'The Coalition will not be proposing changes to the current GST settings with respect to Western Australia,' the shadow economic team said. The statement reinforces the Coalition's acceptance of the 2018 GST deal, which guarantees WA at least 75 cents for every dollar of GST raised in the state. NSW, Victoria, and Queensland typically receive less than 75 cents per dollar of GST raised within their borders and do not have a guaranteed minimum. The arrangement also includes a 'no worse off' guarantee designed to protect other jurisdictions from losing funding, but critics say it has come at a heavy cost. Independent economist Saul Eslake was scathing in his response to the Coalition's decision, telling Sky News it shows they were 'not serious about returning the budget to balance'. Mr Eslake has previously described the WA GST deal as the 'worst public policy decision of the 21st Century', citing two key reasons. Firstly, he argues the deal fundamentally undermines the purpose of the GST system, which is meant to ensure states and territories have the capacity to provide similar public services while imposing comparable tax burdens. Instead, the deal allows WA, Australia's richest state, to enjoy better public services while paying lower state taxes. 'The 'WA GST deal' which Albanese champions means that residents of Australia's richest state, WA, will get better public services whilst paying lower state taxes than other Australians,' he said. 'It is giving WA $7 billion in 2025-26, and at least $8 billion per annum in 2026-27 through 2029-30. 'More than WA needs in order to be able to provide the same standard of services whilst levying the same burden of taxes as the average of all states and territories. Which I think is 'un-Australian'.' Secondly, Mr Eslake said the massive cost blowout of the deal, which has surged from $9 billion over eight years to nearly $60 billion over eleven years, marks it as one of the most expensive policy failures. 'That's the biggest blow-out in the cost of any single policy decision, ever, with the possible exception of the NDIS, which was at least for a noble purpose," he said. Calls to revisit the GST carve-up have intensified from the eastern states which argue the current system is unfairly weighted in WA's favour. NSW Treasurer Daniel Mookhey and Queensland Treasurer David Janetzki have both urged the federal government to reconsider the arrangement and pursue a model based more on population. WA Transport Minister Rita Saffioti accused eastern commentators of being 'obsessed with wanting to tear WA down' on Tuesday. 'If you're a true economic commentator, you would realise that WA is driving the national economic agenda,' she said. Prime Minister Anthony Albanese has likewise stood firm on the deal, saying he supports the position on WA GST given he did not propose changes in the election campaign. 'We support the position on WA that I took to the election, that I took the 2022 election, and that were enshrined at the National Cabinet,' Mr Albanese said on Tuesday. 'Importantly, as well, part of that is that no state's been worse off (under) that guarantee—and that guarantee is in place.' The deal was originally set to expire in 2026-27 but has been extended until 2029-30 as part of a broader agreement with states on the National Disability Insurance Scheme. Mr Eslake has urged bipartisan cooperation to end the costly arrangement, proposing the Productivity Commission be tasked with designing a simpler, more transparent system for distributing GST revenue. 'If the Coalition were to offer the government bipartisan support for reversing the 2018 changes… then the government would have absolutely no valid reason not to accept that," he said.
The Advertiser
28-05-2025
- Business
- The Advertiser
Liberal leader Sussan Ley drops new-look shadow cabinet
SUSSAN LEY'S SHADOW CABINET: * Ted O'Brien has been promoted to shadow treasurer, replacing Angus Taylor who unsuccessfully challenged Sussan Ley for the Liberal leadership. * Mr Taylor moves to defence, while former SAS soldier Andrew Hastie picks up home affairs, Dan Tehan energy and emissions reduction and James Paterson finance. * Nationals leader David Littleproud retains agriculture, his deputy Kevin Hogan remains in trade and Senate leader Bridget McKenzie continues on as infrastructure spokeswoman. * Former Nationals leaders Barnaby Joyce and Michael McCormack have both been dumped from the shadow ministry after spending the past week criticising Mr Littleproud's leadership. * Liberals Jane Hume, Sarah Henderson and Claire Chandler have also been dumped from shadow cabinet. * Factional heavyweight and Scott Morrison ally Alex Hawke jumps back into cabinet from the backbench and becomes the manager of opposition business in the lower house after supporting Ms Ley's leadership tilt. * Jacinta Nampijinpa Price has been punted from shadow cabinet to the outer shadow ministry after defecting from the National party room to sit with the Liberals after the election. * Kerrynne Liddle takes over her cabinet spot and Indigenous Australians portfolio while also picking up social services. * Senator Price's former government efficiency portfolio modelled off Elon Musk's Department of Government Efficiency under Donald Trump has been scrapped after criticism the Liberals had copied the US president's policies. * Tim Wilson jumps straight into shadow cabinet, taking on the industrial relations and employment portfolio after becoming the only Liberal to win back a seat from an independent at the May 3 election. * Liberal moderate Gisele Kapterian has been handed two shadow assistant minister roles despite not having been confirmed as the victor of a tight race in Bradfield, which is undergoing a recount. SUSSAN LEY'S SHADOW CABINET: * Ted O'Brien has been promoted to shadow treasurer, replacing Angus Taylor who unsuccessfully challenged Sussan Ley for the Liberal leadership. * Mr Taylor moves to defence, while former SAS soldier Andrew Hastie picks up home affairs, Dan Tehan energy and emissions reduction and James Paterson finance. * Nationals leader David Littleproud retains agriculture, his deputy Kevin Hogan remains in trade and Senate leader Bridget McKenzie continues on as infrastructure spokeswoman. * Former Nationals leaders Barnaby Joyce and Michael McCormack have both been dumped from the shadow ministry after spending the past week criticising Mr Littleproud's leadership. * Liberals Jane Hume, Sarah Henderson and Claire Chandler have also been dumped from shadow cabinet. * Factional heavyweight and Scott Morrison ally Alex Hawke jumps back into cabinet from the backbench and becomes the manager of opposition business in the lower house after supporting Ms Ley's leadership tilt. * Jacinta Nampijinpa Price has been punted from shadow cabinet to the outer shadow ministry after defecting from the National party room to sit with the Liberals after the election. * Kerrynne Liddle takes over her cabinet spot and Indigenous Australians portfolio while also picking up social services. * Senator Price's former government efficiency portfolio modelled off Elon Musk's Department of Government Efficiency under Donald Trump has been scrapped after criticism the Liberals had copied the US president's policies. * Tim Wilson jumps straight into shadow cabinet, taking on the industrial relations and employment portfolio after becoming the only Liberal to win back a seat from an independent at the May 3 election. * Liberal moderate Gisele Kapterian has been handed two shadow assistant minister roles despite not having been confirmed as the victor of a tight race in Bradfield, which is undergoing a recount. SUSSAN LEY'S SHADOW CABINET: * Ted O'Brien has been promoted to shadow treasurer, replacing Angus Taylor who unsuccessfully challenged Sussan Ley for the Liberal leadership. * Mr Taylor moves to defence, while former SAS soldier Andrew Hastie picks up home affairs, Dan Tehan energy and emissions reduction and James Paterson finance. * Nationals leader David Littleproud retains agriculture, his deputy Kevin Hogan remains in trade and Senate leader Bridget McKenzie continues on as infrastructure spokeswoman. * Former Nationals leaders Barnaby Joyce and Michael McCormack have both been dumped from the shadow ministry after spending the past week criticising Mr Littleproud's leadership. * Liberals Jane Hume, Sarah Henderson and Claire Chandler have also been dumped from shadow cabinet. * Factional heavyweight and Scott Morrison ally Alex Hawke jumps back into cabinet from the backbench and becomes the manager of opposition business in the lower house after supporting Ms Ley's leadership tilt. * Jacinta Nampijinpa Price has been punted from shadow cabinet to the outer shadow ministry after defecting from the National party room to sit with the Liberals after the election. * Kerrynne Liddle takes over her cabinet spot and Indigenous Australians portfolio while also picking up social services. * Senator Price's former government efficiency portfolio modelled off Elon Musk's Department of Government Efficiency under Donald Trump has been scrapped after criticism the Liberals had copied the US president's policies. * Tim Wilson jumps straight into shadow cabinet, taking on the industrial relations and employment portfolio after becoming the only Liberal to win back a seat from an independent at the May 3 election. * Liberal moderate Gisele Kapterian has been handed two shadow assistant minister roles despite not having been confirmed as the victor of a tight race in Bradfield, which is undergoing a recount. SUSSAN LEY'S SHADOW CABINET: * Ted O'Brien has been promoted to shadow treasurer, replacing Angus Taylor who unsuccessfully challenged Sussan Ley for the Liberal leadership. * Mr Taylor moves to defence, while former SAS soldier Andrew Hastie picks up home affairs, Dan Tehan energy and emissions reduction and James Paterson finance. * Nationals leader David Littleproud retains agriculture, his deputy Kevin Hogan remains in trade and Senate leader Bridget McKenzie continues on as infrastructure spokeswoman. * Former Nationals leaders Barnaby Joyce and Michael McCormack have both been dumped from the shadow ministry after spending the past week criticising Mr Littleproud's leadership. * Liberals Jane Hume, Sarah Henderson and Claire Chandler have also been dumped from shadow cabinet. * Factional heavyweight and Scott Morrison ally Alex Hawke jumps back into cabinet from the backbench and becomes the manager of opposition business in the lower house after supporting Ms Ley's leadership tilt. * Jacinta Nampijinpa Price has been punted from shadow cabinet to the outer shadow ministry after defecting from the National party room to sit with the Liberals after the election. * Kerrynne Liddle takes over her cabinet spot and Indigenous Australians portfolio while also picking up social services. * Senator Price's former government efficiency portfolio modelled off Elon Musk's Department of Government Efficiency under Donald Trump has been scrapped after criticism the Liberals had copied the US president's policies. * Tim Wilson jumps straight into shadow cabinet, taking on the industrial relations and employment portfolio after becoming the only Liberal to win back a seat from an independent at the May 3 election. * Liberal moderate Gisele Kapterian has been handed two shadow assistant minister roles despite not having been confirmed as the victor of a tight race in Bradfield, which is undergoing a recount.
