27 March 2025

What's to stop the Prime Minister calling the election today?

| Chris Johnson
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Chalmers, Albanese and Gallagher selling the 2025 Federal Budget

Treasurer Jim Chalmers, Prime Minister Anthony Albanese and Finance Minster Katy Gallagher selling the 2025 Federal Budget. Photo: Anthony Albanese Instagram.

Here’s a thought. Why not call the election today, Thursday, the 27th of March?

Speculation is rife that the PM will do it before the weekend is over.

Sunday is often the day prime ministers take the short drive from the Lodge to Government House to get the process rolling.

However, this Friday (tomorrow) is firming up in some people’s calculations as the day Anthony Albanese might ask the Governor-General to dissolve the House of Representatives and issue the writs for an election.

But why wait even that long?

It would be a ballsy move to call the election today and would be decried by many as a dirty trick.

Yet it would start the campaign with Labor firmly on the front foot and leave the Coalition smarting for a few days while licking its wounds.

Here’s why: Peter Dutton wouldn’t get to give his budget reply speech tonight.

The Opposition Leader is all set to go, bursting to rip into the government’s budget and outline his ‘better way’ for the nation.

There’s nothing in that for the government.

Very late last night, the Senate voted to pass Labor’s tax cut bill emerging from the budget. It had passed in the House of Representatives earlier in the day.

The Coalition voted against the legislation in both houses.

What more does the government need?

READ ALSO Coalition votes against Labor’s budget tax cuts

Calling an election now would allow Labor to use the whole campaign to remind Australians that the very last thing Peter Dutton did before the parliamentary term ended was to try to deny them their tax cuts.

That’s a better scenario for Labor than the last thing from this parliament being a headland speech from the Opposition Leader.

Dutton has promised his speech will contain major cost-of-living relief measures and has already flagged a commitment to cut the fuel excise by 25 cents for a year to make filling up the car cheaper.

With one short drive, the Prime Minister could deny the Opposition Leader the opportunity to explain it any further in parliament.

It would be left to compete with all the other policy noise of an election campaign.

And, of course, there are the Budget Estimates.

They are starting this morning but could be brought to an abrupt end if the election is called now.

Yesterday (Wednesday), the Clerk of the Senate Richard Pye wrote to all government agencies saying he had been asked to inform them about how estimates would be affected if “the Prime Minister calls an election in coming days”.

Under the title “Effect of prorogation”, the letter (which Region has seen) tells the public service bosses that should the G-G prorogue the parliament during this scheduled estimates period, any hearings that had not already started would not take place.

“If hearings are underway when prorogation occurs, the committees conducting those hearings can continue during that day, subject to any decision of the committee to adjourn,” he wrote.

The Clerk goes on to outline that it is theoretically possible for legislation committees to separately resolve to hold estimates hearings after prorogation and that Questions on Notice are regarded as continuing and should still be answered.

“The ‘caretaker convention’ which applies to major decisions of government does not apply to matters of accountability to the Senate,” he wrote.

Late last night, the Senate passed 10 pieces of legislation, including the budget’s tax cut bill, mostly without Coalition support.

It’s unusual to introduce a bill from the budget and insist it be voted on the day after the budget is delivered.

But that’s what the Federal Government did and it got the outcome it wanted.

READ ALSO Tax cuts for all in a Federal Budget that ignites election race

It allowed the Manager of Government Business in the Senate, Finance Minister Katy Gallagher, to have a final blast across the chamber at the Opposition just before 11:30 pm.

“Tonight, they have opposed taking action on gender equality in the workplace. They have voted no to keeping the NBN in public ownership. They have voted no to fee-free TAFE – I don’t know who in the world could vote no for free training and help for people,” she said.

“They have voted no for tax cuts to every taxpayer.

“That is the combination, and it sums up the Peter Dutton approach this entire term. Say no to everything, stand in the way of progress, stand in the way of assistance for households.”

This all adds up to a government primed and ready for an election.

Labor has had its people in place for the campaign for weeks now (they were expecting to be in the middle of it already, but Cyclone Alfred changed that plan).

Peter Dutton has been goading the PM to call the election.

Why doesn’t Albo give him what he wants and call it today?

Such a drastic and unconventional (unfair even) move probably won’t happen.

But if it does, you heard it here first.

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Capital Retro8:45 pm 27 Mar 25

I hope you heard it because you were so wrong.

GrumpyGrandpa5:13 pm 27 Mar 25

The thing stopping Albo from calling an election today, is common sense.

The electorate wouldn’t look favourably on any PM that didn’t give an Opposition the right of a budget reply.

Based on just what has been said in the last couple of days, why would Albo deny Dutton the chance of further proving just how out of touch he is with ordinary Australians?
They already voted against the Tax cuts for all Australians, saying instead they’ll replace it with a temporary Fuel Excise cut.
Previously said they would remove a number of pay increases for low income earners.
Remove the Right to Disconnect.
Remove the Equal Job – Equal Pay legislation
End Free TAFE, thus worsening our skills shortage, that the LNP actually created.
But will give bosses free lunches, while their workers are doing the actual work.
And the list goes on, and on.
Seriously, why would anyone vote for the LNP if they’re not a multi-millionaire/Billionaire?

Plus, can anyone name a single thing that the LNP have done for ALL Australians, and not just big business?

The ALP has insisted on passing the Div 296 Bills in their current form and rejected concerns from the superannuation industry about the taxing of unrealised gains and the $3 million threshold not being indexed. If the ALP is returned to Government at the May election the Bills would be re-introduced.
This would mean that each year more and more retireees whose super balance grows to exceed the unindexed taxable threshold will be taxed on the balance of their super account. It’s not a tax on super income, or on capital gains from the realised sale of shares or assets, but a tax on the account balance. A tax on unrealised capital gains.
It is creating considerable uncertainty in the industry and amongst current and pending retirees.

“taxed on the balance “

False.

Div 296 arises only on the proportion of the balance which exceeds $3M. Even if it were considered on your whole balance then the effective rate on your super is tiny for all but the most extreme cases.

It affects about 0.85% of the population with superannuation. If that proportion doubles to 1.7% after ten or so years cry me a river. Vote for indexation when it gets over 30%.

Example: You have $3M in your balance and finish with $3.45M nett of contributions and payout adjustments. Your actual tax on the amount above $3M will be $8800, an effective rate just over 0.25% on the whole balance for the poor old 0.85% with nearly ten times as much money as the average retiree 65-74. The only uncertainty is for how long the hot tears of the 0.85% will flow before they open another Dom Perignon.

Here is a simple calculator, although more than 99% of people need not bother.
https://www.smsfalliance.com.au/div-296-calculator/

Yes, let’s all cry a tear for for the 0.3% of Australians, who are so wealthy they have $3 million or more in their Super. The vast majority of Australian will be lucky to retire with more than $500,000 in Super for their retirement. So sorry, if most of us don’t actually care, and would rather see the return of higher taxation of the rich.

These two are the exact reason in a few years we will have all sorts of unrealised gains taxed.

It doesn’t matter if it only impacts people you are jealous of. It is a tax on money that does not exist, and may never exist of the stock market crashes and the value of the super fund craters. Only an absolute mouth breathing moron thinks taxing money that doesn’t exist is a good idea.

Of whom am I supposed to be jealous, Ken M? Me?

If you lose money such that your > $3M balance is lower across the year, you would pay no Div 296 tax (if it comes in). Was that too difficult for you?

When your land valuation rises then your rates and possible land tax rise, meaning you are taxed at a local level on capital gain you did not realise, even in a “tax free” home. This is not new. If you do realise a property investment then you are taxed federally as well as owing local rates and taxes until settlement. This is not new.

Greater wealth attracts more taxes, because it is more affordable for the wealthy compared with those with basic income and assets. What does it take to moan about 0.25% on $3.4M when that Dom Perignon is still to hand?

Your premise is that the money “does not exist”. Are you telling me you are not competent to manage investments effectively? Do you never buy shares or property because they might 9and do) fall in value, so stick your cash under the mattress?

There is no fair logic to your position, only whinging. How odd.

A little difficult to explain but to avoid confusion perhaps I should have said account value, rather than account balance. It’s a tax on the floating $ value of what you had in your super account (above the threshold). If our volatile sharemarket is up on the day the tax is assessed, you’ll be taxed on the higher value of your super account, even if you don’t have that value in your account the day before, or the day after. It’s a tax on a figure, not a real amount. So KenM is right, it’s a tax on non-existent funds. Tax should be applied to what you earn or sell (realised capital gains) not on the fluctuating value of what you had at one fleeting point in time. That is why it is unfair, wrong and sets an alarming precedent. Consider this – if the government proceeds to tax unrealised capital gains in high value super accounts, besides the risk of more and more people being inevitably caught by an unindexed threshold, the danger is that a revenue hungry government with persistent budget deficits may well widen the net to tax the unrealised gains/value of other assets, like the value of your house, even if you don’t have the funds ‘in hand’. How would you feel about that? Best to resist now any proposal to tax unrealised capital gains.

@Acton, it is not difficult to explain nor confusing, merely misrepresented by you. I explained it in one brief paragraph and provided an on-line calculator for anyone to verify the facts.

Now you are worried that the share market goes up and down from day to day. Welcome to the share market. Is it a bit scary for you? Are “non-existent” investment funds too hard for you to manage as well?

Average daily variation in the ASX is about +/- 0.8%. It goes down as well as up, more so in the last few weeks, and one day is not a year (fortunately). Average annual gain this century has been about 10%. On $3M with 10% gain the Div 296 tax would be $4090.91, leaving the poor sod with a shade under $296,000 annual profit, and expecting probably only a mere $321,000 net profit after Div 296 the following year. So sad. It’s enough to make one cry into one’s glass of XO Cognac.

Your argument, to dignify your meandering, is the logical fallacy of the slippery slope. It has been raised for every tax ever invented, by people who would rather not pay it. The supposed tragic ending has never happened. See also medicare levy, gun levy, progressive taxation, land tax, PRRT, royalties, BAD, BAS, SCS, you name it, the same silly argument is presented and found wanting. Don’t bother.

The opposition would be “licking its wounds” if the election was called today. What an odd comment. Their policies will come out regardless.

Well it came out today that they want to tax unrealised capital gains and rob peoples super, so they probably want to wait till that blows over a bit. 🤣

You know Ken M you have really established yourself as the standout comedian on this site. In my busy life I can always be guaranteed of getting home at night and having a good laugh, just by logging into the RiotAct and getting a dose of Ken M’s many, and always predictable, thought bubbles.

For me, every time I read one of Ken M’s hilarious posts I am reminded of many things; nuts and fruitcakes, sandwiches and picnics, falling off trollies, five cans and a six pack, loops and crochet conventions; the list goes on.

Keep up the good work Ken!

@Ken M
“Well it came out today that they want to tax unrealised capital gains …”
Those of us who are awake, have known about this proposal since it was first raised over 18 months ago.

No doubt, you haven’t heard, that the “Superannuation (Better Targeted Superannuation Concessions) Imposition Bill 2023” – which includes your stunning revelation for those with super balances over $3m, has been stalled in the Senate since last year, with the Coalition and Senators Jacqui Lambie and David Pocock, among others on the crossbench, refusing to support the legislation.

Gee imagine that, Sen Pocock exercising his vote as an independent!

Oh don’t lie, “Jack D”, you spend all day every day reading this stuff because it’s your job. I do however notice you had no rebuttal to my actual post about your employers robbing super funds of money that doesn’t exist.

If that’s the best the whole ACT Labor social media team can come up with, taxpayers really aren’t getting their moneys worth.

Yes, JS, many of us are aware of it. It just seems to have blown up on news sites today, and people are taking notice.

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