Mulino says the revised superannuation tax policy will still meet this fundamental objective, and he welcomed the changes announced last week.
“It’s a different and better approach to dealing with super tax concessionality.”
“Firstly, at the higher-end balances, we’ve made a number of adjustments which reflect the fact that we’ve engaged deeply over the last couple of years and taken on board some feedback. Which is exactly what you want governments to do.”
Mulino dodged questions on whether he had supported the original draft of the legislation, instead reiterating the government’s claim it had engaged with stakeholders over the past two years.
“I’ve been in this role for six months or so, and on a number of occasions I’ve met with stakeholders who have put a wide range of positions. I think the Treasurer and a number of other senior members of the government have acknowledged that there were elements of the package on which there was a wide range of views.”
“So, we have been consulting and that’s exactly what you’d hope that governments would do. And then we stepped through that feedback carefully and methodically and came up with a different and better way to achieve the same core objective.”
Mulino continued that the latest iteration of the legislation does deal with concessionality at the very high end of balances, and will also provide much “better and fairer” treatment of concessional tax treatment for those earning less than $45,000.
He added that despite the Greens’ comments that the government is catering to the super wealthy, the fact that 1.3 million people will benefit from the LISTO component of the revised legislation should help to garner their support.
“I’d find it very hard to imagine the Greens not supporting a package with all of those elements.”
“The government has a very wide-ranging tax reform agenda already. This is one element of it. Another element of it is the fact that we’re going to be bringing in tax cuts for all taxpayers by reducing the lowest tax rate from 16 to 15 then 14 per cent. And of course that was one of the reasons why the LISTO changes were so important.”
He said there were no plans from the government to start looking at family trust arrangements, and said it would concentrate on the policies currently on its agenda.
“We now need to focus on undertaking consultation to make sure that we get this revised package correct. It’s a complicated set of reforms dealing with superannuation tax concessions in a holistic way.”
“So we’re now going to step through further consultation to get all the details right there and that’s really the focus.”
No, you paid lip service to consultation and only relented when your own back bench called you out.
This unfortunately is the tip of the iceberg. As Margaret Thatcher once said socialism works perfectly until you run out of someone else’s money. Well they are running out and this battle against big government coming after private assets is only just beginning.
Agreed David. If we sit back and take what is dished out, we get walked all over. This was very wrong and sensationally, it was a mighty tax grab aimed at wealth distribution at its worse (literally robbing the rich to pay the poor). It was openly plain theft from people that had saved for decades and may on the surface appear “rich”.
Note for those that are trying to now pitch the young against the old – work hard and save and sacrifice and decades later you will be far better off that where you are with youth on your side. Most of the people that would have been affected by this do not have youth on our side. We were where our youth are. And BTW – housing may cost more in terms of multiples of pay packets, but international travel and flights and cruises are far less than they were in our youth. The youth these days love to travel and travel means no income being earned and savings being spent. Its a simple formula. Only the ultra wealthy could afford to fly when we were young.
And the old chestnut of pitching the so-called poor against the so-called rich – that ran its course under Swan and Rudd-Gillard-Rudd. Chalmers has tried it on, but Australians are too aspirational now to put up with it.
There are get rich quick schemes, but mostly, it take time so the young need to be mentored on this and not have everything just handed over to them. Anything worth while is worth the work.
Generally, my life experience has shown me – you can have youth and you can have money, but the norm is not both at the same time, unfortunately for most of us. However, the journey is well worth it, and not to have money worries in older age for me personally, is worth the work and angst in my youth, when I was most able to handle it. Now I can reap what I have sown – the age-old circle of life that Chalmers tried to cheat.
Spin at it’s very best.
“… we’ve engaged deeply over the last couple of years and taken on board some feedback…”