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Super showdown proves damp squib

Liberal polling showed superannuation changes were not the top of mind issue some backbenchers had suggested.

Australian Minister for Industry Christopher Pyne
Christopher Pyne says there may be 'tinkering' of the government's superannuation changes. (AAP)

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Source: AAP


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For all the grumbling by some Liberal backbenchers over the government's controversial changes to superannuation, it appears most are keeping their views for another day.

The first meeting of federal Liberal members since the July 2 election on Monday found just one voice questioning the proposed changes.

The male member told the private meeting it was irrelevant the changes proposed in the May 3 budget would affect just 4 per cent of Australians, saying it had created uncertainty more broadly and upset the Liberal base.

Some backbenchers had previously blamed the super changes, which include a $500,000 lifetime cap on contributions, for the government's poor performance on polling day.

But the government's pollster Mark Textor told the meeting, superannuation peaked at just 6 per cent as a top of mind issue during the eight week campaign, although discussion of it on some days had got in the way of the government's economic messaging on jobs and growth.

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Before the meeting Liberal senator Ian Macdonald described the superannuation changes as poor politics, although Treasurer Scott Morrison had assured him they weren't retrospective.

Lance Cunningham, national tax director at consultants BDO, agrees it is wrong to call the planned $500,000 cap retrospective, although does believe it would be fairer to make it a $1 million limit or introduce transitional measures.

But he explains a retrospective tax change is one that alters a taxpayer's tax position before the announcement of a change and increases the tax payable for previous years.

"While the proposed changes will affect some decisions made by taxpayers that were based on the current law, they only affect what happens after the announcement and therefore the proposed legislation is not retrospective," Mr Cunningham says.

Prime Minister Malcolm Turnbull said on Sunday he was listening keenly to concerns being raised within his party and the broader community.

Senior ministers are laying the way for amendments to the proposed super measures.

Senior minister Christopher Pyne insists the overall policy remains the same but concedes "there may well be some tinkering around the edges".

"That is perfectly normal and it is good government," he told the Nine Network.

Social Services Minister Christian Porter, who described himself as one of the policy's designers, said there were always issues to be worked through when legislation was being drafted.

But Opposition Leader Bill Shorten has demanded the prime minister end the uncertainty and called for an independent review.

He described the changes as "chaotic and unprecedented" and made with zero consultation.

"They dangerously undermined what experts recognised to be one of the best systems in the world for retirement savings and security," he told reporters in Melbourne .


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