Despite virtually all corners urging superannuation reform, Treasurer Joe Hockey is holding firm to Tony Abbott’s “captain’s call” that the Government would never raise taxes on superannuation, arguing instead that making changes would depress household consumption:
“We are reluctant to touch superannuation because at the moment superannuants are getting very low returns,” he told Sky News.
“If you impose new taxes on those people it simply reduces their ability to spend.
“If you talk about economic growth, more than half of economic growth comes from household consumption. We do not want to do anything to depress household consumption.”
Need I remind Mr Hockey that back in May, whilst appearing on Q&A, he admitted that the superannuation system would need to be addressed eventually in the interests of Budget sustainability.
It was also Mr Hockey that for the better part of 18 months argued for “ending the age of entitlement”.
If Mr Hockey is so worried about depressing household consumption, then why did he make the decision to claw back accessibility to the part Aged Pension and Family Tax Benefits, all the while attempting to cut-off under-30’s access to unemployment benefits? Surely these measures also “reduce their ability to spend” and act to “depress household consumption”?
Seriously Mr Hockey, you are all over the shop. One moment you declare a “Budget emergency” and a “war on entitlements”, only to then backtrack on superannuation, despite admitting yourself that the system needs reform.
