The proposed $500,000 cap on non-concessional superannuation contributions has emerged as a major problem for the Government as it seeks to take the heat out of the election campaign superannuation debate.
Amid suggestions that some rusted-on Liberal Party donors had withdrawn support because of the Budget changes, the Government has given itself some election wriggle-room by signalling a willingness to consult on key implementation issues if it is returned to office.
Both the Minister for Finance, Senator Mathias Cormann and Cabinet Secretary, Senator Arthur Sinodinos, have declared that the Budget changes to superannuation will be up for refinement after the election, with Cormann adding the caveat that he did believe the changes were a particular issue.
However the declarations by Cormann and Sinodinos are consistent with behind-the-scenes lobbying being conducted by key financial services groups and companies which have pointed to a number of unintended consequences flowing from the changes along with a range of serious implementation issues.
KPMG in particular this week issued a list detailing issues requiring clarification on the part of the Government and the Australian Taxation Office (ATO), while a number of financial planners and accountants continued to describe the Budget changes as disastrous.
The comments from Cormann and Sinodinos around post-election discussion of the Budget changes came amid media reports that some Liberal Party donors had withdrawn support in protest at the changes, particularly those impacting upper income earners.
If Scott Morrison is crazy enough in an election to have the Libs sell a dead carcase from Treasury, it’s on his head.