Abbott promises to never increase taxes on superannuation

Prime Minister Tony Abbott, promise, never increase taxes on superannuationThe Prime Minister Tony Abbott has promised his government will never increase taxes on superannuation.

This follows the revelation on Wednesday that the Government was considering changes to the superannuation tax concessions prior to the Budget, but these were dropped after Labor announced their superannuation policy. In a press conference the PM said:

We made a very clear commitment prior to the last election that there would be no adverse changes in superannuation under this Government in this Parliament and we have made a very clear decision that we aren’t ever going to increase the taxes on super, we aren’t ever going to increase the restrictions on super, because super belongs to the people.

The Prime Minister has been increasing the promises on superannuation. Prior to the election the promise was ‘no adverse or unexpected’ changes to superannuation in this term of government, which has since been reiterated. Then the PM said there were no intentions to make changes to superannuation in a future term. On Monday no increases to the “restrictions on superannuation” was added.

Shadow Treasurer Chris Bowen said the Prime Minister had “doubled down” on his superannuation promise.

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Opinion – If you would indulge me for a moment, I think this announcement is a bold promise at best and terrible policy-making at worst. No ‘adverse or unexpected’ changes to superannuation is fair enough in an election campaign, but to rule out ever increasing any of the tax rates on superannuation is ridiculous. Especially in response to what will be a short-lived story. It also makes a mockery of the current Tax White Paper process. It is a promise destined to eventually be broken, only after slowing down sensible reform.

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