Superannuation debate sparks outspoken Liberals to break ranks

Anthony Albanese has found himself with a pair of unlikely allies after the government questioned whether it should overhaul superannuation.

A pair of Liberal backbenchers have broken ranks and defended Anthony Albanese over claims he has broken an election promise by reigniting a debate on superannuation.

Victorian MP Russell Broadbent on Monday said he wasn’t fussed if the Prime Minister was on the verge of an election backflip but said it was up to the government to convince Australians any changes were in the national interest.

His comments come ahead of the release of updated Treasury estimates, which will reveal superannuation tax breaks are worth about $50bn a year.

Russell Broadbent broke ranks with the Liberals over superannuation.

The government is considering whether to cap tax concessions for superannuation accounts with balances of more than $3m in a bid to repair the budget bottom line.

On Sunday, the Prime Minister insisted the debate remain “hypothetical”, stressing the government had not yet come to a decision.

Currently, a person earning under $250,000 can make a contribution to their super before tax at a rate of 15 per cent. That contribution is capped at $27,500 for this financial year.

The government also applies a 15 per cent tax on the earnings within super funds, much lower than the 45 per cent marginal rate taxed on high -income earners.

Anthony Albanese has been lashed for floating the tax concession changes. NCA NewsWire / David Mariuz

Mr Broadbent argued super was no longer “fit for purpose” if Australians were using the tax breaks for wealth creation but the government needed to put the case to the people – but that didn’t necessarily mean waiting for the next election.

“You bring down the budget … you put it to them, you will soon know whether you have the permission or not and you will soon know whether it’s fair, equitable, or just,” he told the ABC.

Outspoken moderate Bridget Archer also told the Guardian the government should not shy away from the conversation.

The Coalition has lashed the government over the past week for walking back claims they would not touch superannuation should they be elected.

Workplace Relations Minister Tony Burke said it was a “valid conversation” given the state of the budget.

“A trillion dollars of debt doesn’t pay itself down,” he told ABC RN.

Originally published as Superannuation debate sparks outspoken Liberals to break ranks