9th Oct 2024, 3:06 PM – Representatives Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill 2023 - Consideration in Detail - Indexation

The majority voted against amendments introduced by North Sydney MP Kylea Tink (Independent), which means they failed.

What do the amendments do?

Ms Tink explained that:

The amendments I'm moving today would ensure that the large superannuation balance threshold is indexed annually, in line with the consumer price index. As it stands, the $3 million large superannuation balance threshold, established in the Treasury Laws Amendment (Better Targeted Superannuation Concessions and Other Measures) Bill of 2023, is not indexed, leaving the decision of when and if to lift the threshold to a future government at some unknown time. This is simply not consistent with sound long-term superannuation taxation policy. It does not provide sufficient certainty to those with money in super or the super industry, and, if left unaddressed, it will create intergenerational inequities.

Amendment text

(1) Schedule 1, item 15, page 10 (after line 17), after section 296-40, insert:

296-42 Large superannuation balance threshold

The large superannuation balance threshold is:

(a) for the 2025-26 financial year—$3 million; or

(b) for a later financial year—the amount worked out by indexing annually the amount mentioned in paragraph (a).

Note 1: Subdivision 960-M shows how to index amounts. However, annual indexation does not necessarily increase the amount of the cap (see section 960-285).

Note 2: The rounding amount for indexation is $100,000 (see subsection 960-285(7)).

(2) Schedule 1, page 28 (after line 10), after item 17, insert:

17A Section 960-265 (after table item 10A)

Insert:

17B Paragraph 960-285(3)(a)

After "paragraph (b)", insert "or (c)".

17C At the end of subsection 960-285(3)

Add:

; or (c) if the amount is mentioned in item 10B in section 960-265—the amount for the 2025-2026 financial year.

17D Subsection 960-285(5) (paragraph (a) of the definition of base quarter )

After "paragraph (b)", insert "or (c)".

17E Subsection 960-285(5) (at the end of the definition of base quarter )

Add:

; or (c) if the amount is mentioned in item 10B in section 960-265—the quarter ending on 31 December 2024.

17F Subsection 960-285(7) (cell at table item 3, column 1)

Repeal the cell, substitute:

(3) Schedule 1, item 18, page 29 (line 27), omit "means $3 million", substitute "has the meaning given by section 296-42".