Speaking to SMSF Adviser’s sister title, InvestorDaily, Blue Sky chief investment officer Alex McNab said that for an Australian government to change the generous tax concessions for wealthy Australians would require a ‘Nixon to China’ moment.
Just as former US president Richard Nixon was the only US leader who could visit Mao Zedong, only the Coalition can change the tax settings for superannuation concessions, Mr McNab said.
“Because if it’s a Labor government doing it, then naturally it will be viewed as class warfare – and there would be some great headlines around that!” he said.
Referring to superannuation changes more generally, Mr McNab said it would make sense for the government to legislate a number of “meaningful changes to super” at the same time.
“In some ways it’s the tinkering that puts people off,” he said. “A little change here, a little change there … you never quite know where you’re going to land.
“Whereas if you rip the Band-Aid off quickly, I think people won’t like it but they’ll accept it and they can make plans around the new regime.”
Mr McNab spoke favourably of Malcolm Turnbull’s recent cabinet reshuffle, noting that the immediate test for new Treasurer Scott Morrison and Assistant Treasurer Kelly O’Dwyer will be to respond to the Financial System Inquiry (FSI) final report.
The Abbott government was due to respond to the report the day after Malcolm Turnbull took power.
“[The FSI response] would be right up the top of Kelly O’Dwyer’s agenda and it would be reasonably high on Scott Morrison’s agenda,” Mr McNab said.
“They absolutely have the right to review it and make sure they’re personally comfortable with it. You’d just love to see it not drag on too long.”
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If Mr Mc Nab thinks that the LNP is the party that will crack down on Tax Evasion by their wealthy backers then he is politically naive.