Billionaire property magnate John Gandel has slammed the federal government’s proposed change to tax on superannuation, saying it is an unfair hit on those who had worked hard for their money.
Gandel made the criticism on Wednesday at the launch of a $70 million entertainment precinct at the huge Chadstone shopping centre in Melbourne’s south-east that he co-owns with the Vicinity Centres property group.
The mall magnate was frustrated by the government’s decision to double the tax on earnings on superannuation balances over $3 million and said it would inevitably affect more than just the country’s top earners.
“It’s ridiculous,” he said. “A tax hike on the top earners of the country who’ve worked hard in this country will always come down on the middle class.”
The increase, from 15 per cent to 30 per cent, is to take effect from July 1, 2025, generating $2 billion in additional tax over four years. Opposition Leader Peter Dutton has vowed to repeal it if he wins the next election.
Treasurer Jim Chalmers has said the government is not coming after the super balances of ordinary Australians, such as the two-thirds who have less than $100,000 in their accounts. Instead, he pointed to the 17 people with more than $100 million in their super accounts and one person who had more than $400 million. The change will affect about 80,000 people.
Despite mounting pressures on households from inflation, rising interest rates and a slowing in spending, Gandel said he was confident consumers from Melbourne and elsewhere would spend at Chadstone’s swanky new entertainment and dining precinct, the Social Quarter. It covers more than 10,350 square metres and has 17 businesses including a bowling alley, bars and a mix of mid-range and upmarket eateries.
“We don’t have any competition; we are insulated at Chadstone shopping centre” Gandel said. “This is probably the fourth or fifth best shopping centre in the world.”