Treasurer Scott Morrison has fired the latest salvo in the battle to pass the Coalition’s superannuation reform package, arguing that taxes will have to rise if the package is not passed by parliament. From The AFR:
“The changes we’ve made to superannuation do a number of things they make the superannuation system more fair and more sustainable and they make a significant contribution to bringing the budget back towards balance.
“Now that obviously has positive implications for reassuring ratings agencies… that is why we are pursuing these changes not just in superannuation… We need to ensure we continue to get this under control otherwise the deficit will be higher, the debt will be higher, more taxes will inevitably rise. This is not something the government is interested in doing,”
Do our politicians honestly wish to maintain a superannuation system that is so generous to highest 10% of income earners that they receive more generous taxpayer support in retirement than the other 90% (see below chart)?
Or will they do the ‘right thing’, curb the excesses, and ensure that the wealthy share the burden of Budget repair along with everyone else?
The wealthiest segments of the population, who also derive the biggest benefits from superannuation concessions, cannot be quarantined from bearing any pain. They too must play a role in Budget repair.
