New proposed superannuation laws have been designed to pull Australia’s trillion dollar debt back into line, but some worry that there could be unintended consequences for family farms. 

The change - if made law - will see those with over $3 million in superannuation have the earnings on their superannuation taxed by a further 15 per cent, to 30 per cent. 

The Australian government said that the change will impact less than 0.5 per cent of Australians, for which the average superannuation balance is $6 million. 

But it's the potential inclusion of rural land in the mix that has agriculture section worried.

Leader of the Nationals David Littleproud said that family farms could become a part of those being hit with the new tax if unrealised gains, such as increased property value, are included in the tax.

“You only have to look at the current year, where property prices have increased but conditions have turned dry, and input costs are at record highs.”

“Farmers may not have the cashflow to pay the tax on the unrealised capital value in their property that was part of a Self Managed Super Fund,” Mr Littleproud said. 

Similarly, the National Farmers Federation said in their submission to the new bill’s consultation that the change could see reduced investment in agricultural land, increased barriers to enter agriculture, and market distortions. 

However Federal Treasurer Jim Chalmers said that the higher taxes are for balances that are beyond what is necessary to fund a comfortable retirement. 

“Labor built the superannuation system. We will always protect it and make it stronger, because we want working people to have dignity and security in retirement,” Mr Chalmers said.

With 60,000 Australians estimated to hold a superannuation balance of over $3 million - one of those being $400 million - Mr Chalmers said that the increase was the clear path ahead to salvage the nation’s debt. 

“Beyond the next couple of years, the budget pressures are intensifying rather than easing.”

“We’ve got persistent and growing spending pressures in health, the NDIS, aged care and of course defence as well.”

The change is expected to raise $2 billion in revenue in its first year, and is set to begin from 2025.