Opposition finance spokesman James Paterson labels Labor’s super tax ‘unsalvageable’ and promises Coalition will release economic policy earlier

New Coalition finance spokesman James Paterson says Labor’s super tax can never be fixed to apply to politicians equally due to “unrealised gains” component.

EXCLUSIVE

Labor’s plan to tax unrealised gains in large super balances is “unsalvageable” and cannot be fixed to prevent some politicians’ being treated differently under the scheme, the Coalition has warned.

Opposition finance spokesman James Paterson said if Labor’s super tax increase on balances above $3 million only applied to income or capital gains in the “normal way” then Anthony Albanese and other veteran public officials eligible for defined benefit pensions would be captured in the same as other Australians.

Coalition finance spokesman James Paterson says he will be laser focused on policies to tackle the budget debt and deficit. Picture: NewsWire / Martin Ollman

“There is no amendment that fixes the contradiction at the heart of it, which is, we don’t tax people on a profit they haven’t actually received,” he said.

In an interview with this masthead, Mr Paterson said Labor’s “cupboard is completely bare” when it came to “genuine” economic reforms, and vowed the Coalition would release its own plan to boost productivity and bring down debt earlier this term, after failing to do so last time.

Labor’s plan to raise the concessional tax on super from 15 per cent to 30 per cent for large balances has been widely criticised for also applying to non-monetary assets, like property or shares.

It means people with mega balances would get a tax bill for any increased value on this assets, despite the financial ‘gain’ not being ‘real’.

The Albanese Government has come under pressure following revelations that due to constitutional rules, politicians and public servants on the old defined benefits pension scheme would be able to defer payment of any unrealised gains tax until retirement.

Employment and Workplace Relations Minister Amanda Rishworth Picture: NewsWire / Martin Ollman

On Sunday, Employment and Workplace Minister Amanda Rishworth acknowledged people on this old scheme would be treated “differently,” but would not say when politicians like Mr Albanese would pay.

“There is interest payable that is calculated in a defined benefit scheme. It is the same way that other superannuation tax changes and other changes have been applied to the defined benefit scheme. It’s no different,” she said.

The Prime Minister said the tax “applies across the board” meaning anyone with a balance over $3m ultimately had to pay it.

Prime Minister Anthony Albanese said the super tax applied ‘across the board’. Picture: Linda Higginson

Mr Paterson said the Coalition would “fight” Labor’s bill, but was “realistic” about it inevitably passing parliament.

“We’ll try and make a bad bill a bit less bad, but we think given the Greens and Labor’s majority (in the Senate) it’s going to be very hard,” he said.

Reflecting on his new role, Mr Paterson said he would be “laser focused” on the budget debt and deficit, declaring the Coalition is “in the market for good ideas” and welcomed input from businesses and “any other stakeholder that’s got good suggestions to make”.

“One of the things that we should have done more of in the last term, but absolutely must do in this term, is articulate our long term vision for the country, and particularly for the economy,” he said.

“We need to be out there arguing for good liberal ideas to reform the economy, to increase productivity, to increase prosperity.”

Senator James Paterson says the Coalition will release economic policies earlier in the term this time. Picture: NCA NewsWire / Gary Ramage

Mr Paterson said given deficits are forecast for the next 10 years it would be difficult to entice investment to Australia through tax cuts, which meant reducing the regulation burden was the best option to attract business.

“The most affordable thing a government can do is make ourselves attractive from a regulatory point of view, to reduce red tape and to make us a really secure and certain destination for investment,” he said.

Mr Paterson said Labor would have to demonstrate in its coming budgets how to pay for the services it has promised Australians.

“I think it’s time for an adult, grown-up conversation with the Australian people about the services you expect and how we pay for them,” he said.

He said the Coalition would be “constructive,” but was “not in the business of helping (Labor) take more tax from Australians”.

“We’ll be looking at any tax increases, particularly ones they don’t have a mandate for, very sceptically,” he said.

Originally published as Opposition finance spokesman James Paterson labels Labor’s super tax ‘unsalvageable’ and promises Coalition will release economic policy earlier