The incessant lobby from the industry and the alleged backbench revolt within the Coalition’s ranks against the Government’s announced caps to superannuation balances appears to be wearing the leadership down, with Cabinet Secretary, Arthur Sinodinos, committing to taking the policy back to the party room in the event that the Turnbull Government wins the upcoming election. From The Guardian:
Sinodinos said the Coalition was open to changes to superannuation measures after the election, while claiming the government would have a clear mandate to implement the changes if they win the election.
“The superannuation changes were part of the budget so they were presented to the party room before the budget was handed down to the parliament,” he said…
“The next process will be if we win the election there will be consultations on various changes and then legislation presented to the party room.”
Unbelievable. After bowing to the property lobby on negative gearing and the capital gains tax discount, the superannuation reforms were about the only good policy the Coalition had left. And now it appears that the rent-seekers and lobbyists might win on this issue too.
I have said it before and I will say it again: there can be no meaningful Budget repair unless the Parliament unwinds Costello’s superannuation lurks. They were always too generous, never sustainable, and highly inequitable – a point acknowledged recently by former Howard Government MP, Peter Reith:
“Many people knew back in 2006 that the Howard government was far too generous when it allowed the top end of town to pay virtually no tax for anyone over 60. It was only a matter of time before the generosity came to an end. Except for the poor and disadvantaged, everyone should have to pay, at the very least, for some of the basic requirements of running a country like our defence forces, the judiciary, our democratic institutions and so on”.
For the good of the nation, the Turnbull Government must hold the line on its super reforms. The rent-seekers cannot be allowed to win this time.
