Tony Abbott pledges to protect our superannuation: No changes during his term of government and beyond
TONY Abbott rules out changes to superannuation in this term of government or beyond, allaying fears self-funded retirees would be razor gang’s target.
NSW
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TONY Abbott has ruled out any changes to superannuation in this term of government or beyond, allaying fears self-funded retirees would be in the sights of federal Cabinet’s razor gang.
The Prime Minister yesterday killed off any plans to go after high-income earners over super tax concessions following suggestions the government was considering changes in the Budget.
Treasurer Joe Hockey has recently called for bipartisan support for a review of the tax concession arrangements for super contributions for high-income earners.
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While not claiming changes were imminent, Mr Hockey’s comments sparked widespread speculation that the government would follow Labor down the path of cutting tax concessions for the wealthy.
The Treasurer has flagged the introduction of “integrity measures” on superannuation and pensions, such as accessing health concessions, to stop the wealthy rorting the system.
Mr Hockey has warned that, over the long term, the budget could not sustain the tax concessions.
Labor has said it would target the tax break, which allows voluntary contributions to be taxed at 15 per cent up to $30,000 a year, regardless of a person’s salary. But Mr Abbott yesterday ruled a red line through the idea, putting any debate on super changes to beyond the next election.
“Unlike Labor we have no plans to increase taxes on superannuation and will honour our commitment not to make any adverse or unexpected changes to superannuation during this term,” he told the Australian Chamber of Commerce and Industry.
Mr Hockey came under attack earlier this week from former treasurer Peter Costello who claimed the government was going on a tax-inspired revenue hunt to compensate for falling revenues.
He described the government’s promise to keep taxes low as a “morbid joke”.
Mr Hockey hit back, claiming Mr Costello was swimming in revenue when he was treasurer and circumstances had changed: “Quite frankly, I really wish I had the revenue that Peter Costello had.”
Mr Abbott also confirmed small business would get a tax cut in the May Budget.
But big business cried foul at not getting any tax breaks, despite the scrapping of the levy that was to pay for the now dumped Paid Parental Leave Scheme.
And childcare providers said Mr Abbott had apparently walked away from his commitment to redirect PPL spending to a broader childcare package.
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