Labor will oppose some of the 2016 Budget changes to superannuation, Opposition Leader Bill Shorten has said in his Budget in Reply speech.
“Labor will gladly support our own clear and costed policy to close the unsustainably generous superannuation loopholes at the very top end,” said Bill Shorten.
“We welcome the fact that three years after they voted to abolish Labor’s Low Income Superannuation Contribution, the Liberals have decided to keep it and simply rename it.”
The Government legislated the LISC to end from 30 June 2017. However the 2016 Budget included an almost identical Low Income Superannuation Tax Offset (LISTO) – to apply from 1 July 2017.
However Labor does not welcome the retrospective changes to superannuation in the Budget.
“Labor’s reforms to maintain the fairness and integrity of superannuation however, will only ever be prospective and predictable – so people can plan for the future with security,” said Mr Shorten.
“But the Coalition’s changes are chaotic and unprecedented. They were made with zero consultation.”
“They dangerously undermine what’s acknowledged as the world’s best system for securing a decent retirement for all Australians.”
“The Treasurer claims only a small number of superannuation account holders will be affected. That’s untrue. When the system is undermined, everyone is affected, everyone is at risk.”
“Every superannuation account holder can now only guess what Malcolm Turnbull and Scott Morrison will do next.”
“This is a matter of principle for us.”
“Labor has very grave concerns about retrospective changes – which is precisely why our reforms to Negative Gearing and Capital Gains explicitly rule out retrospectivity.”
It is unclear yet exactly which measures Labor will oppose – both the $1.6 million transfer balance cap and the lifetime $500,000 Non-Concessional Contributions cap have retrospective elements. Whether Labor will support other Budget superannuation measures changes, such as the change to Transition to Retirement pensions, is also unclear.
Perhaps these questions will be answered in the imminent election campaign?