With just three weeks of Parliament left this year, Labor is expected to put forward a proposal that would see steeper cuts to super concessions to help repair the budget.
This news comes just days after media reports that suggested the Opposition was likely to support the Federal Government’s modified superannuation changes.
According to the Sydney Morning Herald, sources close to Bill Shorten say that an alternative set of proposals to make the superannuation system fairer will be unveiled today. These measures are intended to help increase the speed of the budget repair and are expected to hit high-income earners harder.
Mr Shorten has said for some time that the Federal Government hasn’t gone far enough in its crackdown on high income superannuation tax concessions.
“The current superannuation system delivers half of all tax concession to the top 20 per cent of income earners – that isn’t fair or economically sustainable,” he said.
Among the proposals, it is expected that the government’s $100,000 annual post-tax contributions limit would be reduced to $75,000, as well as a reduction in the High Income Superannuation Contribution threshold to $200,000.
The Government is hoping to have its superannuation package legislated before Parliament closes for the year on 1 December and if this doesn’t occur, it’s likely to delay the expected 1 July 2017 start date.
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