PM talks superannuation promises as election draws nearer
Prime Minister Scott Morrison has reaffirmed his party’s promise to not increase taxes in superannuation, and has hit out at Labor’s policy pipeline for retirement savings.
Mr Morrison emphasised his party’s commitment to avoiding any increases at a function in Sydney this morning, hosted by the NSW Business Chamber.
The SMSF community has long been lobbying for the government to remove superannuation from the short-term budgetary cycle. The closest any government has come was in 2016, when the Liberal Party introduced a bill to have the objective of superannuation enshrined in law, as per the recommendations of David Murray’s Financial System Inquiry. This bill never made it through the Senate.
Mr Morrison also hit out at Opposition Leader Bill Shorten’s public statements and promises related to superannuation, suggesting they are confusing and misleading.
Mr Shorten has committed to no changes in superannuation beyond what Labor has in the pipeline.
To date, Labor plans to reintroduce the 10 per cent test, which essentially restricts the ability for individuals to claim tax deductions for personal contributions.
Changes to the division 293 tax threshold, at which high-income earners pay an additional 15 per cent tax on concessional contributions, would also be lowered from $250,000 to $200,000 under Labor.
Labor is also proposing lowering the non-concessional contribution caps and removing the provision for catch-up contributions.
