Hon Judi Moylan

What does the Mining Super Tax mean for your superannuation?

What does the Mining Super Tax mean for your superannuation? While its impact on the stock market was immediate, many superannuants have already seen the mere announcement of this tax wipe thousands of dollars from their superannuation. Many superannuation funds hold shares in blue-chip and other mining companies and it is estimated that around 9.2 per cent of all investments made by superannuation funds are in resources stocks. The biggest industry superannuation fund, AustralianSuper, holds 11.71 per cent of its shareholdings in BHP Billiton, a further 3.12 per cent in Rio Tinto and around one per cent in Newcrest Mining. Reinvesting in further expansion usually increases a company’s share price. Declared dividends are paid into superannuation accounts. Both increase the value of an individual’s superannuation holdings, but this tax threatens the viability of mining projects and future dividends, potentially decreasing the amount of money available for today’s working families to retire on. I have twice asked the Prime Minister a question in Parliament about how the resource tax would impact on self-funded retirees, whether the government had done any analysis of that impact and, if so, whether they would release it. There are 778,000 self-funded retirees out there, including some in my electorate, who would like to know the answer to that, but we have not received an answer to date. It appears that the government has not done any modelling—or certainly the Prime Minister is not prepared to release it if he has done it—to determine what the impact would be. The impact will also be felt by homeowners, despite the government promising to keep the cost of housing low. They are introducing a tax that may increase the cost to build new homes. This is on top, of course, of six interest rate rises in eight months. One of Western Australia’s biggest land developers, Nigel Satterley, commented in the West Australian on 19 May that the tax will add $20,000 to the cost of a new home. How can the housing crisis be eased when the cost of building a house continues to rise? How can young families aspire to build their own home when the cost, which is already high, will be put further out of their reach? The ramifications of this will touch every Australian in every corner of this continent. The resource tax is a short-sighted, poorly designed measure which forgets the interconnections of the mining sector across Australia’s economy. People are entitled to expect action from their government, not just empty promises and misinformation.

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