Anthony Albanese says he makes ‘no apologies’ for sparking debate about super’s future

A proposed change to a major tax concession has the Prime Minister defending himself against claims he’s broken an election promise.

The Prime Minister has shot down claims he has broken an election promise after the government left the door open to an overhaul of a tax concession designed to encourage Australians to save for retirement.

During the election campaign, Anthony Albanese said he had “no intention” of making any changes to the superannuation system. He was backed by now-Treasurer Jim Chalmers, who said Australians “shouldn’t expect major changes” to super.

But now changes to the superannuation tax concession, worth $53bn this financial year, appear to be in the Treasurer’s sights as he attempts to repair the budget bottom line.

“Right now, we’re on track to spend more on super tax concessions than the age pension by around 2050,” Dr Chalmers said in a speech in Sydney on Monday.

Treasurer Jim Chalmers said the government wants to protect Australians’ super. Picture: NCA NewsWire / Gary Ramage

“I’m not convinced that’s a sustainable way to get to our destination – good retirement incomes for more Australians, now and into the future.”

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.

Tax concessions on super are forecast to cost the budget $52.6bn in 2022-23, bringing it close to the cost of the aged care pension, a recent analysis by the Australia Institute found.

In Port Hedland for a meeting of cabinet on Tuesday, Mr Albanese rejected suggestions the government had backflipped on the issue.

“That is a big call you have made,” he told the reporter. “We have not made any announcements at all.”

Anthony Albanese hit back at the suggestion of a backflip. Picture: NCA NewsWire / Jeremy Piper

“The long-term issue of superannuation is something that we do need to deal with. My government makes no apologies for pointing out what the future looks like in 10, 20 years time.”

The opposition was quick to slam the proposal given the government had not taken it to the election.

“Notwithstanding the government didn’t take any of this to an election, so it has absolutely no mandate and is thrusting this upon Australians, it is quite clear the government is building a mandate to come and tax Australians more – that’s what it does,” opposition assistant treasury spokesman Stuart Robert said.

Stuart Robert is unhappy with the proposed changes. Picture: NCA NewsWire / Gary Ramage

“It’s clear where the government is going, it’s clear they want a ceiling on super … We’ll make it clear to the government: You have no mandate.”

Dr Chalmers stressed his main focus in the near term would be for a definition of superannuation objective and has proposed new legislation to enshrine it.

If adopted, it would end early withdrawals in all but the most serious hardship cases.

Assistant Treasurer Stephen Jones is poised to use a speech in Sydney on Tuesday to double down on the government’s commitment to protecting super.

He will argue a defined objective of super will “stop governments trying to use super for anything but retirement incomes”.