Federal election 2016: Turnbull takes sting out of super

A clash over superannuation sharpened the election fight as the PM promised voters there would be no further changes.

A clash over superannuation sharpened the election fight last night as Malcolm Turnbull promised voters there would be no further changes to the system after the controversial reforms in this month’s budget while Bill Shorten attacked the “poison” of retrospective tax laws.

Mr Turnbull used a televised debate with Mr Shorten to assure Australians that a Coalition government would not go beyond the super tax increases now before the public, while attempting to highlight sweeteners in the package that help women and those on low incomes.

In a debate that lacked fireworks and showed both men relying on prepared lines, the two leaders refused to accept that the other would have a mandate in power — highlighting the risk of a deadlock in the Senate under a Coalition or a Labor election ­victory.

LIVE: Federal Election Campaign 2016

Mr Turnbull accused his rival of using “cheap shots” over tax ­reform while Mr Shorten ­demanded the Prime Minister stop using “fear or smear” against Labor over asylum-seekers, in a tense exchange that highlighted the Opposition Leader’s concern that the issue of border protection was working against him.

Mr Turnbull sought to turn the tables on his rival, using the issue of border protection, highlighting it as a weakness for Labor. “If Bill Shorten becomes prime minister, his government will be tested by the people-smugglers.”

Mr Shorten tried to needle his rival on climate change — asking “whatever happened to the old Malcolm Turnbull?” — and then suggested the Prime Minister was not truly in charge of his own government. “There’s a big different between me and Mr Turnbull. I genuinely lead my party whereas your party genuinely leads you,’’ Mr Shorten said.

The taunts were met each time with an assurance from the Prime Minister that his views on climate change remained the same and that any progress depended on a global agreement rather than a new tax. Asked if he could give Australians a promise that there would be no other change to super in the next term of parliament, Mr Turnbull said: “Yes, I certainly can.”

He denied the government’s changes were retrospective — a claim that has divided experts — and said the changes showed he was not governing for the wealthy. “With all due respects to those who suggest we are only serving the interests of wealthy Australians, there are many that are unhappy about the changes we have made,” he said.

“It’s going to be a fairer system, a fairer system and once those changes are implemented, they will stay that way.”

Mr Shorten left room to make further changes to super, amid ­expectations that Labor might try to increase the super guarantee levy for employers over time, while keeping up his attack on the government. “If we believe in the rule of law, retrospective changes are poison to confidence in superannuation,” he said.

Mr Turnbull insisted on the need for a company tax cut over the coming decade to lift growth, as Mr Shorten told Australians that the money should be put ­towards healthcare and school funding instead.

“Over the next three years the beneficiaries will be small and ­medium companies, almost all of which would be Australian owned and most of which by numbers certainly will be family owned,” Mr Turnbull said.

“These companies employ millions of Australians. The companies up to $10 million in turnover employ five million Australians and that will all benefit from that support because they will see more investment in their business.

“Paul Keating reduced it, a Labor treasurer. Peter Costello ­reduced it, Bill Shorten proposed reducing it last year. Chris Bowen wrote a book about reducing it but now, in this election, it is anathema to the Labor Party. They have no plan for economic growth, no plan for jobs. It’s the same old Labor — just spending.”

Mr Shorten hardened his language about the government’s generosity to big business and dismissed the economic growth from the reform by describing it as “0.1 per cent of GDP per year” rather than the 1 per cent permanent boost modelled by Treasury. “Same old Liberals, just give tax cuts to the top end of town and let the rest of the people make do with not much at all. That’s what I would say Mr Turnbull,” the ­Opposition Leader said.

When Mr Shorten was asked how high taxes could go under Labor, he said he was “determined” to put downward pressure on taxes as a proportion of GDP but kept more detail until later in the election campaign.

Asked about voters who might be disappointed with his performance since rising to the leadership last September, Mr Turnbull emphasised his background in life outside politics and sought to use his business background as a reason for voters to trust him. “Our opponents have nothing to say about the economy other than increasing taxes and denying tax cuts to business,” he said.

He cited Mr Keating as a Labor leader who cut company taxes and reminded the audience that Mr Bowen, the Labor Treasury spokesman, backed a lower company tax. Mr Turnbull did not ­directly address the suggestion that voters were disappointed with him, but sought to stand on his record on climate change. “I stand where I have always stood, recognising that we must take action as a global community to reduce our greenhouse gas emissions to protect our environment for our children, our grandchildren and the generations that come thereafter. I stand where I’ve always stood.”

Mr Shorten used that question to accuse the government of reverting to “Tony ­Abbott’s three-word slogans” when voters had expected a change.