Union Raises Concerns Over Anthony Albanese's Superannuation Tax Plan

Anthony Albanese's plan to tax Australians with more than $3 million in super has faced criticism from the head of Australia's trade union movement. Labor aims to introduce a new 15% tax on the unrealized gains of retirement savings above this threshold in self-managed super funds. This would increase the tax rate to 30% for those with large super balances when combined with the existing 15% tax on earnings during the accumulation phase.

The government argues that only 0.5% of Australians, or 80,000 people, have over $3 million in super and suggests that a future government can adjust it for inflation. However, the Australian Council of Trade Unions secretary Sally McManus believes the policy should be indexed now to prevent future workers from being affected as their super balances grow over time.

Ms. McManus, along with former Labor Prime Minister Paul Keating and former ACTU chief Bill Kelty, has criticized the Better Targeted Superannuation Concessions bill proposed by the Albanese Government. New analysis indicates that even young workers with average incomes could be impacted in the future if the new tax is not indexed.

Wilson Asset Management's modeling shows that failure to index the tax could affect 5.4 million Australians aged 18 to 34 by the time they reach 67 and qualify for the age pension. The proposed tax, known as Division 296, would impact individuals with varying super balances, including those with zero super currently.

With Labor and union leaders expressing concerns about the super tax plan, Albanese has chosen not to comment on the matter. The proposed legislation, aimed at generating $2.3 billion annually in revenue, is expected to be legislated with the support of the Greens in the Senate.