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LABOR BACKFLIPS ON SMSF FARM TAX GRAB – FOR NOW

14 October 2025

Federal Member for Riverina Michael McCormack says the Labor Government’s retreat on its terrible plan to tax unrealised gains on farms held in self-managed super funds is a victory for many Riverina families but warns that Labor has a track record of saying one thing and doing another.

“I have been campaigning against Labor’s deeply unfair super tax since it was announced – it was seen by The Nationals and the industry as a cruel tax grab which would inflict even more pain on people living in the regions who are already suffering from this Government’s lack of real action on addressing the cost-of-living crisis,” Mr McCormack said.

“It is important to remember, however, that Labor will find another way to unfairly tax hard-working Australians.

“Labor has been repeating the mantra of telling Australians that it will help them earn more and keep more of what they earn, but poor policies such as this one prove it is running out of money, and it plans to come after yours.

“You simply can’t trust Labor.”

The scrapped tax would have doubled the tax rate on earnings from superannuation balances above $3 million, and would have targeted farmers, small business owners and self-funded retirees, particularly those in regional and rural areas. It would have forced people to pay tax on money that hasn’t even reached their savings accounts by targeting unrealised capital gains.

“If The Nationals did not fight this poorly conceived policy from Labor, it would have forced farmers to sell their land, instead of passing it on to their families. Whilst I am relieved Labor has backflipped, this policy never should have seen the light of day,” Mr McCormack said.

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

“The Nationals will always stand up for our hard-working regional Australians who expect a fair go and not to be punished for their success.”

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