Tony Abbott, former Liberal Party leader and prime minister, said the changes to the $3 million super tax legislation mean two things: Labor still regards superannuation money as its piggy bank to be raided at need, and the forces inside the Labor Party that gave birth to unrealised capital gains tax haven’t gone away, even if they’ve been temporarily rebuffed.
“I think it is inevitable, if this government endures, that there will be some kind of wealth taxes. The Greens want it. Jim Chalmers obviously wants it, and he’s still the obvious successor to Anthony Albanese,” Abbott said during an interview with the Institute of Public Affairs.
“So, yes, in one sense, it’s a relief that the worst feature of this tax has now been removed, but it’s a lucky escape. It’s not a permanent partner, if you like, from the kind of cash grab that we can expect down the track, or asset grab we can expect down the track from Labor.”
Abbott continued that he found it “extraordinary” that the campaign against Labor’s tax on unrealised gains only started after the election, when it would have been “a sitting duck for attack” before the election.
“But for some inexplicable reason, the Coalition was almost mute on this before the election. It’s only after the election that people have started to campaign and successfully campaign,” he said.
“However, the fact that Labor has been forced by public pressure to pull back on this suggests that it could have been a very potent pre-election.”
Abbott said the current opposition needed to learn from this and ensure that it develops clear policy around issues such as the super tax.
“Just because the polls say that there’s no current constituency for a particular policy change or initiative doesn’t mean that you can’t argue the case to a successful conclusion,” he said.
“I mean, the essence of successful politics is making your case. It’s having a policy position. It’s arguing the case, and it’s persuading the public that what you think is right is actually what they think is right.
“This idea that we should just consult the opinion polls and do what the opinion polls currently say is preferred is not leadership, and in the long run, it’s not good politics. And yet, we’ve seen too much of weak, poll-driven politics, particularly on my side of the fence.”
He continued that the Liberal Party could be very strong on the superannuation issue, as well as others.
“The fundamental point is the job of an opposition is not to make weak compromises with a bad government. The job of an opposition is to be a strong and clear and credible term,” he said.
Ted O’Brien, shadow treasurer, said that after the government’s super tax changes, it was “a victory for the Coalition of Commonsense over a tax-hungry Labor government that simply cannot stop its spending spree”.
“After two years of chaos and spin, Labor has cobbled together a new model with multiple thresholds and other moving parts. Who knows what unintended consequences will be buried in the fine print,” O’Brien said.
He said the opposition is waiting for the final details of the new policy, including how it will operate and who will be affected.
“Australians deserve stability and predictability in superannuation, not constant changes driven by a government in desperate search of higher taxes,” O’Brien said.
“Spending under Labor is growing more than four times faster than the economy and has reached its highest level outside of a recession since 1986. That tells you everything you need to know about their addiction to big government and why they can’t be trusted to manage people’s retirement savings or the economy.
“The Coalition’s principles remain clear: super should be about helping Australians build a nest egg, not a blank cheque for the government to fund its spending spree.”
Tony Abbott is correct when he says Labor can’t be trusted to manage people’s retirement savings.
He needed to add that Labor cannot be trusted to govern Australia at all.
Labor’s strategy is to bankroll the unproductive section of society to shore up their voting base.
For as long as they pursue the wind and sunshine fallacy whilst NDIS and home care package systems are unregulated – they will need to grab cash.
There just aren’t enough of us anymore working independently of Government to provide that income, Government employees aren’t a tax base.
They are already making noises about trusts, after this death duties other than death benefits tax, it’s all down the pipe.
They have a spending problem which they won’t acknowledge and they’ll be coming after the people who already pay the most tax. With 50% of the population in receipt of some form of government benefit, who also vote, they won’t touch these things. Just more bureaucrats, more NDIS etc.
The government doesn’t have an income problem (in fact receipts have skyrocketed) they have a spending problem.