Jim Chalmers hits back at ‘hypocritical’ Coalition
But it also reduced the income threshold at which additional tax is paid on super contributions. That Division 293 tax threshold was not indexed to inflation or wages growth and was cut to $250,000 from $300,000 with the 2017-18 financial year.
When put in place, the Coalition estimated it would affect just 1 per cent of super accounts, or 160,000 people.
Chalmers said Treasury now projected that by 2052, 30 per cent of people with super would be affected by the Coalition’s changes.
He said the figures revealed the Coalition’s “dishonesty and deception” towards the government’s planned superannuation changes.
“All their hypocrisy and hyperventilating is to distract from the fact that they want to add to the trillion dollars of Liberal Party debt to fund bigger tax breaks for people who already have tens of millions in super,” he said.
“The reason why our policy has received such deep and broad support from the Australian public is because it’s a modest and sensible change that helps clean up some of the mess that the former government left behind.”
Federal parliament resumes on Monday, with Chalmers yet to respond to a demand from the Senate to make public the modelling showing 10 per cent of super accounts would be affected by his proposed changes by the 2050s.
Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley. Subscribers can sign up to our weekly Inside Politics newsletter here.