Bowen promises freeze on super changes
Labor is promising a five-year freeze on major superannuation tax law changes.
Under the freeze, people can be reassured that the rise to 12 per cent super, increased concessional caps and the tax cut for workers earning up to $37,000 will not be “ripped away”.
Treasurer Chris Bowen has confirmed the policy, which he says will promote confidence and stability in the super system and will commence immediately.
“This will be enshrined in legislation by a re-elected Rudd Labor government,” Bowen said in a statement today.
“This will give Australians the confidence to make investment decisions in the knowledge that the rules will not be subject to constant change.”
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But the Coalition said Labor’s announcement lacks credibility.
Shadow assistant treasurer Mathias Cormann said Prime Minister Kevin Rudd made a similar promise before the 2007 election.
“We now know that Kevin Rudd broke that promise in his very first budget after that election and every budget after that,” Cormann said in a statement.
“Kevin Rudd, from the 2008 Budget onwards, initiated a massive ramp up in taxes on superannuation.”
The Coalition has an “iron-clad and believable” commitment to no unexpected negative changes to superannuation, he said.
