POWERED BY MOMENTUM MEDIA
Labor wants electoral mandate on super concessions
The Australian Labor Party (ALP) has declared it wants an electoral mandate to cut superannuation tax concessions.
The Shadow Treasurer, Chris Bowen, has vowed that the ALP will stick to its policy announced in April to tax superannuation earnings returning more than $75,000 during the retirement phase, and to lower the threshold for the 15 per cent High Income Superannuation Charge from $300,000 to $250,000.
Bowen yesterday told the National Press Club in Canberra that despite Prime Minister Tony Abbott's declaration that the Government would not be changing the superannuation settings, Labor would be seeking an electoral mandate to do so.
"Someone has to show the courage to say it and to deal with it and Labor has decided not only to do that, but to do it before an election and seek a mandate to deal with it," he said.
"An important criterion for a well-functioning tax system is fairness, where there are some contentious and important issues that need to be explored. For example, substantial tax assistance is provided to superannuation savings," Bowen said.
"We need to consider whether the level and distribution of these concessions remains appropriate."
Acknowledging that Labor's policy announcement had been controversial, the Shadow Treasurer said a politician telling people that a tax break can no longer be afforded is never going to be universally popular.
"But it has to be said that the taxation concession on superannuation earnings in retirement is unsustainable. We can't afford it as a nation," he said.
"Tax concessions don't just happen – a tax concession for one person is paid for by higher taxes on another. In this case, the tax concessions for the highest income earners are paid for by the taxes of mums and dads."
The Federal Treasurer, Joe Hockey, questioned the ALP approach and suggested that Labor had failed to deliver on superannuation while in Government.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
