SUPERTAX BACKFLIP WELCOMED – VOTE NOW ON GRAIN LEVIES

Grain Producers Australia (GPA) welcomes the Federal Government’s backdown on the proposed Super Tax, recognising its failure to achieve legitimate policy support. 

GPA Chair, Barry Large, said growers and their families were especially pleased to see an end to the government’s move to try to introduce a 15 percent tax on unrealised earnings in self-managed super funds (SMSFs), for balances above $3 million. 

He said news of the government’s announcement of the policy backflip would be especially welcomed by many growers in South Australia, and other states such as Victoria, where challenging seasonal conditions have also generated difficult financial conditions and losses. 

“This is one less stress they’ll need to deal with now. For providing this pressure relief, we acknowledge the decision announced today, by Federal Treasurer Jim Chalmers,” he said. 

In June, GPA hosted a webinar on the tax policy proposal which featured a panel of financial experts – Chartered Accountant John Thompson from Seer Financial Group, and RSM Australia Business Advisor Partner Katie Timms. 

The panel discussion focused on how the proposed taxation changes would affect family farms using SMSFs for succession planning and intergenerational asset protection. 

Mr Large said the unrealised gains component of the proposed policy lacked moral clarity given it was based on flawed calculations in subjecting intergenerational assets to unfair conditions, and theoretical values, instead of assessments of actual farm incomes, versus expenditure. 

“We’re pleased to see common sense has now prevailed. Good policy is good politics. It’s the right move in the end to put a stop to this flawed proposal, and this relief can now be recognised and acknowledged, by hard working producers,” he said. 

Mr Large said growers facing challenging seasonal conditions in grain producing regions – especially loss of income due to compound impacts of drought – also needed to consider other financial relief options, when casting their vote in GPA’s levy review process. 

“Just like stopping a proposed tax or getting rid of one or cutting it, there’s nothing theoretical about the bottom-line impact of a reduced levy,” he said. 

“I strongly encourage all growers to participate and have your say. Just like a tax, it’s compulsory to pay levies and additionally, in this process, GPA wants to ensure the value and benefits are optimised, not only for the growers who pay them, but across industry. Especially stronger biosecurity protections. 

“We’re asking growers to vote now and contribute to answering this core policy question – are levy rates fit-for-purpose? Your levy, your rates, so please have your say. Cast your vote now.” HERE 

ENDS 

Further Information: 

GPA Chair Barry Large – 0427 549 023 

GPA Executive Officer Communications Rachael Oxborrow – 0416 705 193