LABOR’S WAR ON YOUR WALLET AND THE ECONOMY

We have long known that when Labor governments run out of money they come after yours by raising taxes.

So it should come as no surprise to Australians that the first order of business for the Albanese government is to get their hands on more of your money.

Yes, even before the final seats have been declared, Prime Minister Anthony Albanese and his Treasurer Jim Chalmers are salivating at the prospect of dipping into your pockets.

This raid by Labor comes in the form of a most insidious form of taxation – probably one of the worst taxes ever dreamed up – they want to tax the unrealised capital gains on assets held in the superannuation funds of Australians.

That means that if you have a superannuation fund of $3 million or above and it holds assets like property they want you to pay tax on the rise in value of that property over any 12 month period.

And here’s the really evil part about this tax – it will be levied even if you don’t sell the property to realise the gain – you will be taxed on money you’ve not actually made.

Worse still – if that same property drops in value in later years  – you don’t get any of what you’ve already paid back from the government.

Numerous experts are now thoroughly criticising this tax grab.

This week The Australian reported that the Reserve Bank’s immediate past governor Philip Lowe and ­former Treasury secretary Ken Henry spoke out against Labor’s tax, declaring it’s not good public policy and that key recommendations to make the superannuation system fairer have been ignored.

Business leaders including CSL chairman Brian McNamee, Sydney Swans chairman Andrew Pridham, retailer Gerry Harvey, Wilson Asset Management boss Geoff Wilson, the first investor in AfterPay and Labor donor David Hancock, and former Labor vice-president and union leader Michael Easson  have all criticised the proposed tax on unrealised gains.

Labor itself expects this tax will bring in almost $40bn in tax revenue over the next decade.

The government has baked into its budget proceeds of the tax, which it expects will reap as much as $2.3bn in its first full year and as much as $7bn a year after that.

Now Labor is trying to spin it’s way out of this by saying it will not affect that many Australians. And those who it will affect are rich and can afford it.

But as always with Labor that’s not the whole truth.

To start with some superannuation funds held by Australians are asset rich but cash poor – many famers for example may hold their property or part of it in their super fund.

If it goes up in value they won’t necessarily have enough cash to pay the tax bill – they may well be forced to start selling assets.

The other insidious part of this tax is that it is not indexed.

So while $3 million sounds like a lot of money right now in 10, 20 or 30 years many more superannuation funds will reach that level and will be forced to pay the tax on unrealised gains.

And what we also know about Labor is that when they set a precedent like this they are very likely to try to work out new ways to levy such a tax.

What other unrealised gains that are not part of super accounts are they likely to come after in the future?

So as the Opposition in this new Parliament we will fight this insidious tax and keep warning Australians about what Labor is doing.

But the sad reality is that with Labor’s majority in the House of Representatives and combined with the Greens in the Senate this tax is likely to pass both houses and become law not long after the Parliament resumes in late July.

It will be left to the next Coalition Government to get rid of this regressive and insidious tax – after Labor has been able to rip billions of dollars from the retirement savings of Australians.

Meanwhile we are really starting to see the effects of the first term Albanese Government’s radical industrial relations agenda.

The re-unionisation of the mining industry in Western Australia’s Pilbara is well and truly under way.

As reported by The West Australian Australia’s economic engine room is heading for its first industrial strike in 17 years, with the wharfies union preparing to down tools in the resources-rich Pilbara.

Ben Harvey wrote: “The Maritime Union of Australia is set to strike at Port Hedland after failing to reach agreement with the State Government over housing and salaries.”

The Australian reported that Minerals Council of Australia chief executive Tania Constable has accused unions of misusing the vast new powers that the Albanese Labor government has given them in order to bully their way into the Pilbara.

On the east coast transport unions have waited patiently and are now ready to play they hands using the multi-employer bargaining laws to their benefit.

They’ve threatened to shut down transportation across Australia.

In a speech in Brisbane last week Transport Workers Union national secretary Michael Kaine threatened the largest coordinated industrial campaign in Australian transport history.

He said: “This alignment of agreements isn't accidental. It's been carefully orchestrated to maximize our collective bargaining power.”  

This type of widespread and co-ordinated industrial action is exactly what I warned about at the time the multi-employer bargaining laws went through the previous Parliament.

The unions have been emboldened by an Albanese Government hellbent on handing them the sort power they desire and now they are threatening to “shut down Australian transport.”

This is a test for the new Workplace Relations Minister, Amanda Rishworth. She needs to ensure that these strikes do not go ahead.

The Albanese Government needs to bring this militant union under control.

As I write this update the Liberal and National parties are still in negotiation over a Coalition agreement.

I am confident we will get this done.

We will always be stronger together and while things went a little off the rails between us last week, prompting the Nats to walk away we were able to start talking again later in the week.

We need to get past our differences and start holding the Albanese Government to account.

Australians expect us to be an effective and strong opposition and we can best do that together – we particularly owe that to the 4.8 million Australians who voted for a Coalition on May 3.

Finally I want to pay tribute to two great stalwarts of our party here in Western Australia who both retired from the State Parliament this week.

Peter Collier and Donna Faragher both came into the WA Parliament in the 2005 election and have thus both served  the people of Western Australia  for more than 20 years.

Both have played prominent roles within Government and while in opposition.

Peter served as a Minister in various portfolios including Eudcatoon Energy, Training, Indigenous Affairs and Electoral Affairs.

Donna was Environment Minister as well as Planning and Disability Services Minister.

Both have also given unwavering service to the WA Liberal Party.

We should all be thankful for their service and I also know both Peter and Donna are thankful that you all have shown them over their many years of service.