The Coalition has been accused of “deception and double standards” by the Labor Government, saying changes the previous government made to superannuation will affect three times as many people compared to Labor’s own plan.
It gave new figures showing the former Coalition government’s 2017 tax increase on superannuation would impact triple the number of earners compared to Labor’s target for those with balances over $3 million.
Treasurer Jim Chalmers lashed out at the Liberal Party, accusing it of “hypocrisy” and calling it out for “dishonesty, deception and double standards”.
The Coalition had been on the attack – heavily criticising the Government’s plan to reduce tax concessions for future earnings on super balances above $3 million – which is due to come into effect in 2025-26.
In particular, it had highlighted the Government’s refusal to index the $3 million balance threshold to inflation or wages, meaning 10 per cent of retirees would be impacted in 30 years’ time, with shadow treasurer Angus Taylor describing it as “very, very tricky”.
Yet new Treasury projections showed the Coalition’s move to lower the income threshold for extra contributions tax to $250,000 from $300,000 was not indexed, meaning it would also see the number of people impacted over time grow.
Comparing the two policies, the projections found that at least the top 30 per cent of earners retiring in 2052 would have paid additional contributions tax in their working life under the threshold legislated by the Coalition.
The Coalition’s plan was originally estimated to affect only about 1 per cent of people with a superannuation account – or 160,000 people – when it began in 2017-18.
However, the new analysis showed it will end up affecting at least the top 30 per cent of earners retiring in 2052 – compared with the Albanese Government’s plan which is projected to affect only the top 10 per cent of earners in 2052.
“These figures reveal the Coalition’s dishonesty, deception and double standards,” Dr Chalmers said.
“All their hypocrisy and hyperventilating is to distract from the fact that they want to add to the trillion dollars of Liberal Party debt to fund bigger tax breaks for people who already have tens of millions in super.
“The reason why our policy has received such deep and broad support from the Australian public is because it’s a modest and sensible change that helps clean up some of the mess that the former government left behind.”
The Coalition had called out the Government for obscuring the long-term impact of its plan when it initially stated that the change would affect less than 0.5 per cent of people with a superannuation account – or about 80,000 people.
Later, it was revealed that one-in-10 Australians retiring in 30 years’ time would be affected by Labor’s proposal to slash tax concessions on the biggest super balances.
Data has revealed that there are 27 Australians with more than $100 million in super – but a small detail has prompted frenzied speculation as to which rich-lister has a racked up an eye-watering balance of more than $544 million.