Superannuation tax changes welcome

St Vincent de Paul Society in Australia welcomes today’s announcement by Treasurer, the Hon Dr Jim Chalmers MP, that Australia’s biggest superannuation accounts will face higher taxation.

‘The change to concessional tax rates for accounts of more than $3 million – from 15 per cent to 30 per cent – will affect less than 0.5 per cent of Australians and is an important step in rebalancing Australia’s distorted tax and superannuation systems, which heavily favour high-income households and entrench poverty and desperation among Australia’s most vulnerable,’ National President Claire Victory said.

‘We urge Treasurer Chalmers to dedicate part of the budget savings to improving the lives of the three million Australians—and one in six children—living in poverty by increasing income support payments and Commonwealth Rent Assistance.

‘Reform of Australia’s tax and welfare systems is central to creating a fair Australia.

‘That is why the St Vincent de Paul Society in Australia commissioned The Australian National University to undertake research into simple and affordable changes to Australia’s tax and welfare system that could lift one million people out of poverty with only very modest impacts on the wealthiest Australians.

‘High-wealth households should be asked to pay a little more to help lift people out of poverty. ‘The current Senate Inquiry into the Extent and Nature of Poverty in Australia is revealing how dire the situation is for households relying on income support.

‘Australia must have a conversation about reforming our tax and welfare systems to create a fairer Australia,’ Ms Victory said.