The Chartered Accountants Australia and New Zealand (CA ANZ) has called on the Federal Government to abandon the proposed Superannuation (Better Targeted Superannuation Concessions) Bill 2023, citing fundamental design flaws and concerns about its economic impact.
The bill, which is set to be debated in the Senate this week, would introduce an additional 15% tax on individuals with more than $3 million in total superannuation assets. CA ANZ argues that the proposal is flawed and could create significant administrative and financial burdens.
Concerns Over Design Flaws and Economic Implications
CA ANZ’s 2025-2026 Federal Budget Submission reiterates its opposition to the policy, highlighting three key issues :
- Lack of indexation of the $3 million cap, meaning the threshold will not adjust with inflation.
- Taxation of unrealised capital gains, which could force individuals to pay tax on assets that have not yet been sold.
- Treatment of capital losses, which may not be effectively carried forward under the proposal.
CA ANZ Chief Executive Officer Ainslie van Onselen expressed concerns about the broader economic impact, particularly on individuals who built their superannuation balances under previous tax policies. She noted that many of those affected are elderly and that their superannuation funds would exit the system within the next decade.
“There are major design flaws with this proposed legislation. We also believe this tax will be very expensive for individuals, superannuation funds, tax agents, financial advisers, and the Australian Taxation Office (ATO) to administer, while raising little net revenue when all costs are considered,” van Onselen stated.
CA Anz Pushes for Small Business Tax Reforms
In addition to opposing the superannuation tax policy, CA ANZ is urging the government to implement long-term tax reforms ahead of the upcoming federal election. The organisation is advocating for policies that support small businesses, which make up 97% of Australian enterprises.
Among its key recommendations, CA ANZ is pushing for :
- Making the instant asset tax write-off threshold permanent, to encourage business investment.
- Introducing a grant to help small businesses access financial health checks.
- Extending tax carry-back rules, allowing businesses to offset current losses against past profits.
“With the election months, if not weeks away, CA ANZ is hoping to see sensible policies from both major parties that put Australians first and focus on long-term reform instead of short-term fixes,” van Onselen said.
Addressing Economic Sustainability and Productivity
CA ANZ also argues that Australia needs to shift away from heavy reliance on personal income tax to sustain government revenue. Van Onselen warned that the current tax system places a disproportionate burden on hardworking Australians, and that a broader tax reform is necessary to maintain economic resilience.
“Australia has relied too heavily on personal income tax to prop up our balance sheet, and that is taking a toll on Australians who are just trying to get ahead in a difficult economy,” she said.
CA ANZ Chief Economist Richard Holden emphasised that improving labour-market flexibility, tax competitiveness, and supply chain resilience are essential for sustaining economic growth. He stated that reforms in these areas are long overdue and critical for ensuring Australia remains an attractive location for investment.
“CA ANZ looks forward to working with the Government on these important recommendations to improve Australia’s economic position and move our economy forward,” van Onselen concluded.
