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April 2nd, 2013 
Peter Nolan
Posted
Opposition Leader Tony Abbott has moved to capitalise on continuing division within Labor ranks over changes to superannuation.
There are growing signs the Government will use the May budget to scale back some of the tax breaks available to high-income earners and the “fabulously wealthy”.
Labor frontbencher Simon Crean is continuing his attack against the potential changes, signalling he may cross the floor to ensure “common sense” prevails.
Speaking at a round-table meeting in Sydney today, Opposition Leader Tony Abbott said Mr Crean’s stance sent a clear message to the Government.
He vowed no “further adverse changes” would be made to super in the first term of a Coalition government.
“There’ll be no further adverse changes under a Coalition government at least for a first term because we want to encourage people to put money aside,” he said.
“We don’t want people to feel that if they put money aside it’s a piggy-bank for government, not for them.
“It’s your money, it belongs to you. It shouldn’t be raided by the government.
“And our message to the Government in the lead up to the budget is, ‘Hands off people’s superannuation’.”
Mr Abbott plans to scrap the low-income superannuation tax offset because it was funded by the mining tax, which the Coalition will repeal if it wins office.
His comments came after Mr Crean again warned the Government against making changes to superannuation.
“I think the sooner they spell it out, the better for all of us. I think that people need certainty, especially when it comes to retirement incomes,” he told Channel Nine.
Crossing the floor?
Mr Crean has not been too clear on exactly what changes the Government is examining.
He says if the changes are about making the policy sustainable for taxpayers, it is to be applauded.
He says it makes no sense that high income earners get tax breaks that average workers are not eligible for and indeed they end up paying for anyway, through their taxes.
But the former Labor Party leader is warning against changes that will have an adverse impact on people who have super now.
“I am prepared to do whatever I can to make common sense prevail,” he said.
When asked if he would cross the flood to stop the changes, Mr Crean said: “This has to be fought on two fundamental grounds.”
“One, the test is, is it a retrospective application. If it is, it should be rejected,” he said.
“Second, do we need to make it more sustainable. But also on the basis that we continue to grow the adequacy of the superannuation pool.”
Prior to the leadership turmoil earlier this month, Mr Crean called for an end to “class warfare” and demanded the ALP rule out any changes to superannuation tax because “that can easily be run as a scare campaign”.
Topics:
superannuation,
business-economics-and-finance,
federal-government,
government-and-politics,
tax,
australia
Source Article from http://www.abc.net.au/news/2013-04-02/abbott-seizes-on-creans-super-comments/4605222
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