Luke Howarth Criticises Division 296 Tax; Advocates for Financial Services Reform

Luke Howarth, Shadow Assistant Treasurer, has firmly opposed the Division 296 Tax, targeting large superannuation balances, which he described as taxing "unrealised capital gains" and "complete rubbish". Speaking at an event hosted by the Financial Services Council (FSC), Howarth outlined the Liberal Party's priorities for the financial sector should they be elected, with a particular emphasis on scrapping what he sees as unnecessary and burdensome tax measures.

In one of his first major public addresses since his appointment by Opposition Leader Peter Dutton in March, Howarth emphasised the urgency of streamlining regulations that complicate financial advice and literacy among young Australians. "We understand what the industry is effectively saying, so it needs to be implemented as soon as possible. We wouldn’t be reinventing the wheel", he stated, reaffirming his support for the recommendations of the Quality of Advice Review (QAR).

Moreover, Howarth highlighted the excessive regulatory environment as a significant barrier to providing simple financial advice. He pointed out the current Compensation Scheme of Last Resort (CSLR), which he found surprising and burdensome, especially as it obliges people to cover others' financial missteps. He called on the government to fulfill its commitment to finance the CSLR for a full year instead of just three months.

On the topic of superannuation and retirement income, Howarth reassured supporters that he backs the existing super system and is not looking to introduce major disruptive changes. However, his critique of the Division 296 Tax underscores a key policy position against what he views as overreach into the financial lives of Australians with larger super balances.

This stance marks a clear direction for Howarth and the Liberal Party's approach to financial services reform, focusing on reducing regulatory burdens and opposing new taxes that they see as unjustified.