Shadow Treasurer grilled in heated exchange over old superannuation tax video

Treasurer Jim Chalmers has hit back at ‘ridiculous and dishonest’ claims as the fiery debate over superannuation changes threatens to boil over.

Treasurer Jim Chalmers has hit back at “ridiculous and dishonest” claims the government is making “reckless” changes to national superannuation policy in a heated rebuttal to his Coalition counterpart.

As the debate ignites around the hotly contested changes, Mr Chalmers told the ABC that Opposition Treasurer Angus Taylor was spreading a “scare campaign falling down under the weight of its lies”.

He appeared on the ABC to refute comments made by Opposition Treasurer Angus Taylor on the ABC’s Insiders program on Sunday morning.

Mr Taylor had appeared on Insiders on Sunday morning to criticise the government’s announcement that it would increase the concession rate for Australians with more than $3m in their super accounts.

Treasurer Jim Chalmers has fired up at his opponent’s comments about the newly announced superannuation changes. Picture: NCA NewsWire / Martin Ollman

From July 1, 2025, those with millions in super savings will be hit with a concession rate of 30 per cent – double the current rate of 15 per cent – if the proposed legislation passes parliament.

Prime Minister Anthony Albanese and Treasurer Jim Chalmers estimated the proposed changes would only affect 80,000 Australians, or 0.5 per cent of the workforce.

Mr Taylor told Insiders host David Speers that the estimate was “clearly very, very wrong” and “complete rot”.

“This policy is flawed, in some respects reckless and it will have a far bigger reach, much bigger reach than Labor is pretending here,” he said.

The government has ruled out changes to the concessional tax rate for the remaining 99.5 per cent of the population, but the Shadow Treasurer maintained younger Australians would be disadvantaged in the long term.

“If I’m investing as a 20-year-old, it will be close to 50 years before I get access to that money and the way that is treated along the way is hugely important,” he told the Insiders host.

Opposition Treasurer Angus Taylor lambasted the government’s plan to increase superannuation concession rates for the country’s highest earners. Picture: NCA NewsWire / Gary Ramage

The federal Treasurer hit back with force, labelling his opponent’s comments a “ridiculous and dishonest scare campaign”.

“What we saw today from Angus Taylor is a plethora of lies, dishonesty, and (an) increasingly ridiculous scare campaign that does not stand up to facts,” he said.

He told the ABC the super amendments would be “a modest change” that will only impact 0.5 per cent of the population.

“There will still be generous tax concessions for everybody in the system, but (they will be a) little bit less generous for people with more than $3 million in their superannuation accounts,” Mr Chalmers explained.

In a fiery exchange with the Insiders host, the Shadow Treasurer was pressed on whether he thought Australians with millions of dollars should only pay 15 per cent tax on their earnings.

“You‘re asking me if I support this policy. I reject it …. I support the current policy,” he told Mr Speers after repeatedly trying to dodge the question.

The stance appears to contradict a view Mr Taylor held seven years ago, when he wholeheartedly backed increasing super tax for wealthy Australians.

Just in case he’s forgotten - this is me with Angus Taylor on Sunrise in 2016.

Here’s what he said when the Libs increased taxes on super in govt: “it’s totally inappropriate that someone who has contributed millions + millions of dollars continues to get those 15% concessions” pic.twitter.com/0q5icfsbUD

— Tanya Plibersek (@tanya_plibersek) February 27, 2023

During a morning television show panel in 2016, the now-Shadow Treasurer exclaimed: “it’s totally inappropriate that somebody who has contributed millions and millions of dollars continues to get the 15 per cent concessional rate.”

However, Mr Taylor denied backflipping on his convictions when questioned on Sunday.

“Context is important,” he said.

“This is a different policy and it‘s so important to understand that.”

Mr Chalmers demanded an explanation for his opponent’s change of heart on increasing super tax for a wealthy minority.

“Angus Taylor could not even tell the interviewer today whether he agreed with himself from 2016,” he said.

“He needs to explain why his view has changed.”

Mr Taylor predicted the changes would bring doom and gloom. Picture: NCA NewsWire / Gary Ramage

His opposition accused the government of breaking a “cast iron election promise” that they would not tamper with the super scheme.

“People are very sensitive about superannuation,” Mr Taylor told Insiders.

“When a government says they will do one thing and does something completely different, when the money is locked away and I can‘t get access to it, it is a very, very significant breach of trust.”

The Treasurer promised the changes to the super scheme would ensure the concessions could remain available in future for the majority of Australians.

“We believe in superannuation, we want to strengthen it … and that means making sure the generous tax concessions are affordable and sustainable as well into the future,” he said.

The Coalition has vowed to repeal the changes if they win the next federal election, which would cost the economy approximately $2bn a year.

The Shadow Treasurer accused the government of looking to super after it “lost all discipline” in terms of managing the federal budget.

Mr Chalmers and Prime Minister Anthony Albanese believe the changes will strengthen the super scheme. Picture: NCA NewsWire / Martin Ollman

Mr Chalmers rubbished the claim, noting his government inherited “$1tn in debt and deficits as far as the eye can see” from the Liberal government.

“They want us to borrow even more to give bigger tax concessions to people who have got tens of millions of dollars in their superannuation,” he claimed.

The Treasurer said the government would reclaim billions of dollars for the budget by taxing the super of the highest earning Australians.

He said the approach ran contrary to “what the Coalition did when they were last in office which was to chase and demonise the most vulnerable people with Robodebt.”

Originally published as Shadow Treasurer grilled in heated exchange over old superannuation tax video