As the new Federal Parliament sits for the first time this week, the National Farmers’ Federation (NFF) is urging Senators to reject the proposed Super Tax.
The NFF and its members have strongly opposed to the Super Tax since the Bill* was introduced in the last Parliament, given the threat it poses to the 17,000 family farms held in self-managed superannuation funds.
NFF President David Jochinke, who is in Canberra during the sitting fortnight, said the Bill had numerous flaws, but taxing unrealised gains was the worst.
“It’s fundamentally unfair to tax hardworking families for paper gains on assets they haven’t sold,” Mr Jochinke said.
The NFF is also warning against any move to lower the tax threshold from $3 million to $2 million to secure Greens support.
“This would be an even more devastating outcome for Australia’s farming families than the original Super Tax parameters.
“Thousands more farms will be in jeopardy if the threshold is lowered to $2 million.
“We are against the current Bill, and in particular its taxing of unrealised gains, but to aim for an even lower threshold in order to ram the Bill through the Senate is just reckless.”
Mr Jochinke said holding family property in superannuation was a legitimate way for farm succession planning.
While the imminent Super Tax remains the top concern this sitting fortnight, the NFF is also engaging with parliamentarians on other key policy areas:
Environmental reform: Support sensible changes to the Environmental Protection and Biodiversity Conservation (EPBC) Act that reduce duplication and red tape, align with the Samuel Review, and balance environmental goals with economic viability.
Trade stability: Advocate for a calm, strategic response to US trade shifts and progress on a fair European Union Free Trade Agreement that doesn’t compromise Australian agriculture.
Climate policy: Ensure emissions targets don’t undermine food security. Agriculture must contribute fairly, but without sacrificing productivity or profitability. Fit-for-purpose carbon methodologies for farmers are urgently needed.
Food security strategy: With rising risks from global tensions, climate change, and supply chain fragility, the Government must act on its election commitment and work with industry partners to deliver a National Food Security Strategy that addresses supply chain vulnerabilities that may impact agricultural production.
“As the 48th Parliament begins its work from tomorrow, we look forward to working with all parties and crossbenchers to engage constructively with the agriculture sector to deliver meaningful outcomes,” Mr Jochinke said.
“From fair and sensible tax reform to productivity-enhancing policies, there is a real opportunity to partner with agriculture to support the wider economy’s growth.
“These priorities align with the NFF’s 2030 Roadmap, which charts a path for Australian agriculture to become a $100 billion industry by 2030.”
*Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023
Additional Background on SMSF
Self-Managed Superannuation Funds (SMSF) are a common tool in small businesses to manage assets and business succession. In the case of agriculture, older farmers will often hold their assets in a SMSF and lease the operations to their children, providing both retirement income for them as well as an opportunity for the next generation to start farming.
In evidence provided to the Senate Economics Committee Inquiry into the Bill by the SMSF Association, it was estimated that over SMSF 17,000 accounts in 2021/22 held farming land. With over 3,500 of those immediately impacted by the new tax, and substantially more of the remaining likely to be captured in the coming years. Additionally, it was estimated that there are 13,000 SMSF’s holding business real property who will be impacted by this tax.
Ashleigh Whittaker
Stacey Davidson