When Labor first introduced its legislation to increase the tax burden on 80,000 superannuants, it seemed plain sailing. Now, with opposition spreading across the community to small businesses, farmers, retired judges, public servants and venture capitalists, its passage through the Parliament is looking increasingly unlikely.
Labor’s proposal to tax earnings on super balances above $3 million gave the Greens the perfect opportunity to accuse SMSFs of being property centric. Pity the facts don’t support their argument.
In the 2019 federal election, Labor’s proposal to abolish cash refunds for excess franking credits went down like a lead balloon. So, will the $3 million cap proposal see Labor revisit history?
From their inception, SMSFs have always attracted more than their fair share of criticism. Now it’s an ageing membership that’s being used to restrict their numbers.
