The Prime Minister of Australia has announced changes to superannuation tax concessions for individuals with more than $3 million in super, leading to accusations of a broken election promise by Opposition Leader Anthony Albanese. During the 2022 election campaign, Albanese had stated that Labor had no intention of making any changes to retirement savings.
The new policy would double the super contribution tax rate for the richest 0.5% of Australians from 15% to 30%, effective from July 1, 2025, to save the budget $2 billion a year. Albanese emphasized that the 15% concessional tax rate would continue to apply to 99.5% of Australians with less than $3 million in retirement savings.
The announcement has sparked a media frenzy, with Seven News political editor Mark Riley confronting Albanese about his previous commitment to no major changes to superannuation. Albanese defended the policy, stating that the new tax rate affected only a few wealthy individuals. However, shadow treasurer Angus Taylor accused Albanese and his Treasurer Jim Chalmers of breaching their commitment to voters.
This is not the first time an Australian Prime Minister has been accused of breaking an election promise. Julia Gillard promised no carbon tax, only to introduce one in 2011, and John Howard promised “never ever” to introduce a GST before taking the policy to voters in 1998.
The changes to superannuation tax concessions will not come into effect until after the next election, giving voters a chance to voice their opinions. The current concessional tax rate for super contributions costs the budget $53 billion a year, and the crackdown on the wealthiest 0.5% of individuals is expected to save $2 billion. Superannuation tax policies have historically been contentious, with Labor losing its majority in 2010 after proposing a mining tax, and the Coalition losing seats in 1998 after campaigning for a GST.
»Anthony Albanese announces changes to superannuation tax concessions«
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