Farmers and small business owners are banding together to warn the government that proposed superannuation changes will devastate thousands of Australian families and businesses.
Farmers and small business have joined forces to raise concerns regarding the Government’s proposed superannuation changes, warning they will adversely impact thousands of hardworking Australian families and small businesses.
The peak body representing farmers, National Farmers’ Federation (NFF) and the Council of Small Business Organisations Australia (COSBOA), which is the voice of 2.5 million Australian small businesses, are urging Parliament to make sensible changes to the legislation.
David Jochinke, President of NFF said by making appropriate amendments, the Bill* could still achieve its overall aim without causing undue hardship to small businesses.
“Farmers and small business owners are united in our view that this Bill will have unintended consequences on the operations and succession planning of these small businesses across the country, in particular for those that hold a Self-Managed Superannuation Fund (SMSF) to structure their business.
“In the case of agriculture and small business, older farmers or business owners 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 enter the business.”
The peak bodies are particularly concerned about the proposed taxation of ‘unrealised gains’ on holdings proposed in the Bill, with the increased tax obligation likely to place undue financial burden on thousands of small businesses.
Luke Achterstraat, CEO of COSBOA has strong concerns on the detrimental impact the proposed tax changes could have on small business owners across the country.
“We urge parliamentarians to consider the real-world impact of these tax changes. Our small business owners deserve policies that support, not hinder, their hard work and contributions to the economy,” Achterstraat said.
“This new tax on the unrealised gains on assets held in the SMSF may see an increased obligation that represents a significant proportion of an owner’s annual income, or even exceed it.
“This may see the older generation left in a terrible situation where they may have to sell their assets to meet this new tax obligation or increase lease rates to their children so much that their own children’s business may become unviable.”
“The Government has consistently said this Bill targets the top end of town, people with hundreds of millions of dollars in their super accounts – not hard-working, family-run small businesses.”
These issues have also been raised by numerous other groups who provide financial services and advice to small business and farming families including The Tax Institute, The Financial Advice Association of Australia and The Institute of Financial Professionals Australia.
The NFF and COSBOA are calling on the Government and parliamentarians to listen to these concerns, come together and make sensible amendments to the Bill so Australian families and small businesses aren’t adversely affected.
*Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023
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