‘Uneasy’ John Howard breaks ranks with Liberal Party on super, tax

JOHN Howard has broken ranks with the government to express concern over changes to super and the tax system.

Former PM John Howard addresses the 75th anniversary dinner in Canberra of the Sir Robert Menzies Forgotten Peoples Speech of 1942. Picture: Ray Strange.

JOHN Howard has broken ranks with the Turnbull government to express concern over changes to the superannuation and taxation system designed to improve housing affordability, the third key budget measure the former prime minister has failed to fully ­endorse.

The Weekend Australian reports that Mr Howard reiterated his “unease” with the government’s $6.2 billion levy on banks and reserved judgment on the $18.6 billion school reforms because of claims it could strip almost 200 Catholic schools of future funding.

John Howard has broken ranks with the Turnbull government to express concern over changes to the superannuation and taxation system. Picture: Ray Strange.

The government’s First-Home Save Scheme facilitates tax savings through superannuation by allowing $30,000 to be salary sacrificed as voluntary contributions that later can be withdrawn before retirement for a house deposit. Contributions and earnings are taxed at concessional rates.

“I don’t think changes to the tax system are going to make a dramatic difference, if any, either way, and I’m not in favour of that,” Mr Howard said.

“It’s a supply and demand thing. I personally don’t agree with disturbing superannuation. I don’t agree with giving people ­access to their superannuation.”

Read more at The Weekend Australian.

Originally published as ‘Uneasy’ John Howard breaks ranks with Liberal Party on super, tax