Scott Morrison ‘to launch super law in stages’

Scott Morrison has warned controversial superannuation changes are vital to the ‘budget repair job’.

Scott Morrison has warned controversial superannuation changes are vital to the “budget repair job” and vowed to press ahead because it is crucial to wind back tax concessions becoming “unaffordable over time”.

But the Treasurer insists the changes will target only people who have already made “a very handy use of existing concessions” to build a solid nest egg. The $6 billion superannuation changes will boost the budget bottom line by $2.9bn over the forward estimates.

Mr Morrison said talks were continuing with backbenchers about contentious issues such as a proposed $1.6 million transfer balance cap, $500,000 lifetime non-concessional cap and $25,000 concessional caps, which he said would affect only 4 per cent of superannuants. While that discussion continues, he will release draft legislation today for other aspects of the super plan for discussion.

This includes moves to boost the savings of 3.1 million low-­income earners, including 1.9 million women, ensuring the tax on their super contributions is not higher than that on their take-home pay.

The government will also allow 800,000 people who do not have access to salary-sacrifice provisions, which Mr Morrison said would include the self-employed and contractors, to claim a tax deduction for personal super ­contributions.

Mr Morrison said a further 40,000 people were tipped to benefit from removing the ban on people aged between 65 and 74 making voluntary contributions. He said these “pro-flexibility” measures were opposed by Labor.

Mr Morrison said the other parts of the package would be released in coming weeks “because it is very complex legislation and we are continuing to work through some of those details”, and denied talk they could be abandoned.

Opposition financial services spokeswoman Katy Gallagher said the government had promised its super changes were iron- clad but splitting the release showed they had fallen apart.

“Anything short of ... a full and detailed legislation package including contribution caps is an admission that he has completely stuffed up,” she said.