The bill that will introduce the impost on total super balances over $3 million, or Division 296 tax, has passed the House of Representatives without amendment and will now move to the Senate for further debate.
Debate on the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 resumed in the lower house today, with amendments by teal independents to use a proxy rate for earnings and the indexation of the $3 million threshold defeated. The amendments were previously presented during an earlier debate on the bill.
Proposed amendments by the opposition financial services spokesman Luke Howarth to have schedules one to three removed, which contain the Division 296 tax, were also defeated.
The resumption of debate comes five months after the bill was last raised in parliament, with a second reading debate and vote taking place on 16 May, and 10 months after it was introduced into parliament on 30 November 2023.
The SMSF Association expressed its disappointment at this development and expressed its belief the passage of the bill through the lower house indicates the government is confident it will be able to garner support for it in the Senate.
“Despite all the evidence about unintended consequences that have been presented to the government since this tax proposal was first mooted in early 2023, it seems determined to press ahead with the taxation of unrealised capital gains that will be disastrous for thousands of primary producers and small and family businesses who will be impacted by this tax,” Burgess said.
“The fact that the government is proceeding with this legislation means they are confident they have the support of the Senate, and we urge the Senate, and especially the crossbench, to listen to these legitimate grievances and vote down this legislation.
“In all likelihood, the fate of this bill now rests in the hands of the Senate crossbench and we are urging them to listen to the concerns raised by a growing number of constituents.”
He noted the government would need the support of all 11 Greens senators and at least three crossbenchers to pass the bill.
''