Mallee farmers and family businesses have had an enormous win, after The Nationals’ strident opposition to Labor’s tax grab saw the government abandon its move on unrealised capital gains today.

In the biggest government backdown since the May election, Treasurer Chalmers today retreated on Labor’s poorly conceived, reckless and cruel plan to tax unrealised gains on farms held in self-managed super funds (SMSFs).

Dr Webster said the outcome was the result of persistent Coalition advocacy.

“I’ve been saying for many months this tax grab on unrealised capital gains was the most brazen and unprecedented in the world, and at long last common sense has prevailed,” Dr Webster said.

“Labor’s plan to punish Australia’s hardest workers and attack their unrealised superannuation gains was shocking from the start and never should have happened.

“Many families set up SMSFs as their future retirement vehicle and for succession planning, unaware Labor could come for their assets every single year.

“Labor refused to tell us how many primary producers, small and family business owners would have been impacted.

“Throughout the process, Labor also demonstrated they have no understanding of farmers’ inconsistent cash flows impacted by weather, bad seasons, commodity prices and supply shocks.

“Labor’s plan would have forced farmers to sell their land, instead of passing it onto their families, just to feed more revenue to a Labor government that has taken government spending as a percentage of GDP to 27 per cent, the highest level outside of a pandemic or recession in 40 years.

“The Nationals are relieved Labor has backflipped, but this policy never should have seen the light of day.

Dr Webster called on the Government to apologise to the farming and small business communities for the stress and uncertainty they have caused.

“Our farmers who produce the nation’s food and fibre and our small businesses are not only the engine-room of our economy, but the majority of businesses in rural towns.

“The Nationals will always stand up for our farmers and farming communities, and that includes their assets.”

“This exercise demonstrates that in their core DNA, Labor doesn’t understand regions and are coming for your family trusts next.  It took a sustained Opposition campaign to demonstrate the Australian public do not support hitting hard-working Australian families’ retirement savings.  Labor will be back chasing your assets and The Nationals will remain eternally vigilant to protect your farm and hard-earned retirement savings.

Dr Webster noted federal Labor’s unrealised capital gains asset cash grab came at the same time the Victorian Labor Government is imposing its controversial Emergency Services Volunteer Levy, which also taxes the annual gains in property values.  After farmer protests, the Allan Government declared a 1 year amnesty for some – but not all - farmers from paying the levy.

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