Grattan: Labor’s super reforms not enough

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By Leith van Onselen

Echoing my post this morning, the Grattan Institute has responded to the Labor Party’s proposed superannuation reforms, arguing that they are nowhere near enough. From The AFR:

“Super has essentially become a large tax avoidance scheme for the well off,” Grattan Institute chief executive John Daley said.

“The ALP’s proposals are a step in the right direction and a good start, but nothing like enough”…

“It certainly doesn’t make the system ‘sustainable’.”

Meanwhile, Opposition Leader, Bill Shorten, has stood by Labor’s proposal, arguing that former Treasurer, Peter Costello, had destroyed the sustainability of the system:

“Something went wrong about 2006 when Peter Costello and John Howard took off any brake when they provided practically unlimited tax concessions to people who have millions and millions of dollars.”

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Yes they did, Bill. So why not unwind Costello’s reforms in full rather than only going part of the way?

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.