The Tasmanian Farmers and Graziers (TFGA) oppose Treasurer Jim Chalmers proposed increase on the superannuation tax rate.
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The Treasurer announced that 0.5 per cent of people with balances above $3 million will receive less generous tax breaks.
"Currently, earnings from superannuation in the accumulation phase are taxed at a concessional rate of up to 15 per cent. This will continue for all superannuation accounts with balances below $3 million," Mr Chalmers said.
"From 2025/26, the concessional tax rate applied to future earnings for balances above $3 million will be 30 per cent," he said.
CEO of the TFGA, Hugh Christie, said this policy decision to effectively double the tax rate for every hardworking Australian from 15% to 30% would be devastating for future investments into farming.
"As the agriculture industry aims to reach $100 billion in farm gate output by 2023, AgriFutures Australia estimates that the industry will require an investment of $3 billion dollars in capital to achieve this," Mr Christie said.
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"Over five years, the government will effectively reduce the markets access to $10 billion of capital.
"The design of superannuation is to assist ordinary Australian households on a scale that they couldn't achieve alone," he said.
Mr Christie said the decision will impact the government's estimate of 80,000 Australians and the 23.2 million super accounts under management by super funds.
"The growth of super funds in private asset investment, in fact, helps everyday Australians by allowing funds to diversify risk and invest in private assets even the wealthiest Australian cannot easily access," Mr Christie said.
"Instead of closing the gap between the richest and poorest of the nation, the government will successfully open the gulf further with this policy decision.
"We want to avoid damaging investment into what is a successful growth industry for the nation, especially one which plays such a pivotal role in employment in regional Australia," he said.