16th May 2024, 5:15 PM – Representatives Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 and another - Second Reading - Unrealised capital gains

The majority voted against an amendment to the usual second reading motion, which is "that the bill be read a second time" (parliamentary jargon for agreeing with the main idea of the bill).

Amendment text

That all words after "That" be omitted with a view to substituting the following words: "the House:

(1) notes that the inclusion of unrealised capital gains in the measurement of earnings will:

(a) add further complexity, red tape, and costs to the superannuation legislative framework;

(b) lead to unintended consequences that contradict the stated objective of the bill;

(c) impact small business owners and farmers who hold land and business premises in self-managed super funds;

(d) risk substantial liquidity stress and financial stress for members of self-managed super funds;

(e) constitute a significant departure from the long-established principles of our tax system; and

(2) calls on the Government to replace the current measurement of earnings with a simplified measurement that reduces uncertainty and the severity of including unrealised capital gains, such as using a deemed rate of return (adjusted for unrealised gains) as a proxy for earnings".