Prime Minister Tony Abbott has made a surprise commitment never to tackle one of the government’s most expensive and inequitable tax concessions.
Mr Abbott said on Wednesday: “There will be no changes to super, no adverse changes to super in this term of parliament and we have no plans to make adverse changes to super in the future.”
While the PM’s language was ambiguous – use of the word ‘adverse’ being open to interpretation – Fairfax reported a source had confirmed the Coalition will not take super tax changes to the next election.
If this is correct, it means Tony Abbott has pre-empted the outcome of the Tax Review currently underway.
Super tax concessions cost the government $30 billion a year, and overwhelmingly favour the very rich. For this reason the policy is a prime target for tax reform, and is almost certain to figure prominently in the review’s final recommendations.
On top of this, polls suggest voters want a super tax system that is fairer.
By ruling out changes before the tax review has even had time to investigate the process, Tony Abbott may be placing himself in an awkward situation.
The New Daily contacted both the Treasurer’s office and the Prime Minister’s office for confirmation. The Treasurer’s office declined to comment, and the PM’s office did not respond.