Nobody likes paying more tax: PM

The substance of government changes to superannuation is not going to be changed, Prime Minister Malcolm Turnbull says.

File image of Liberal Senator Arthur Sinodinos

File image of Liberal Senator Arthur Sinodinos Source: AAP

Malcolm Turnbull has stared down coalition critics of his planned crackdown on superannuation tax concessions, ruling out any policy changes.

"Let's get real about this, nobody likes paying more tax," the prime minister told reporters in Sydney on Thursday.

Even with measures that include limiting the tax-free status of retirement accounts over $1.6 million and changing transition-to-retirement arrangements, superannuation remained a very generous tax advantage system, he said.

The substance of the changes, outlined in the May 3 budget, was not going to be changed, Mr Turnbull said.

Earlier, Opposition Leader Bill Shorten stepped up his attack on the prime minister, accusing him of blindsiding Australians.

"When Mr Turnbull blindsided, sideswiped Australia on budget night they hadn't consulted on superannuation changes," he told reporters in Sydney.

The government was "picking up the jungle drums" of angry coalition supporters by suggesting changes would be made to its plan after the July 2 election.

One measure, a lifetime non-concessional contributions cap of $500,000 backdated to 2007, in particular had tax accountants "pulling out their hair".

Mr Shorten said few Australians would have paperwork going back so far.

Labor has still to say whether it will support the measures through parliament.

The government is facing resistance from some of its own MPs, although how many has been difficult to determine.

Backbencher Ewen Jones, for one, is not amused by some of his colleagues challenging the government on the issue during an election campaign.

"If someone wants to start an argument over this, they're just doing what the Labor Party wants us to do," he said.

Liberal senator Zed Seselja dismissed claims of a widespread revolt looming inside the party.

Senior groups agree overly-generous tax concessions need trimming.

However, National Seniors Australia says some of its members are confused - some to the point of outrage - by the changes.

"I don't think it has been well sold and that's really fed into this whole area of people now resisting, I suspect, the importance of reform," chief executive Michael O'Neill said.

The Council on the Ageing (COTA) has attacked the "fire and brimstone" criticism of those who have benefited from taxpayers subsidising their plans.

The government insists only 4 per cent of Australians are affected by its changes, and most of them are high-income earners.

But a little-publicised measure hits about 115,000 people aged between 55 and 64 who are taking advantage of transition-to-retirement rules.

From July 2017, the earnings from their super account will be taxed at 15 per cent - removing the tax-free status that applies now.

Cabinet secretary Arthur Sinodinos has flagged the government will consult coalition MPs after the July 2 election.


Share
3 min read

Published

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world
Nobody likes paying more tax: PM | SBS News