Hockey open to cutting super tax concessions

Treasurer Joe Hockey has left the door open to cutting superannuation tax concessions, as pressure mounts from all sides for him to do so.
His comments come ahead of the April release of a taxation white paper that will recommend major overhauls to Australiaâs taxation system.
When asked by Q&A host Tony Jones last night if he was planning to look at the issue of super tax concessions, Mr Hockey said: âOn principle, itâs worth having a look at.â
⢠Would you win or lose under the Greensâ super tax?
⢠Hockey âmust end super tax rootsâ for the rich
However, he went on: âThe reason why Iâm cautious is because itâs their money. Iâm always cautious about taking peopleâs money off them.â
He repeated this statement a number of times.
When pressed again to say whether the government would tackle super tax concessions, he said: âYes, if someone has got $12 million in their superannuation, thatâs extraordinary if theyâre not paying any tax on it.
âBut that is not the rule, that is not the common situation. And what weâve got to do is have a proper discussion ⌠about how are we going to sustain our quality of life for longer.â
Mr Hockeyâs failure to rule out cutting super tax concessions contrasted with his rejection of tackling tax breaks on negative gearing, on the contested grounds that doing so would raise rents.
His cautiousness reflects the intense pressure he will be under not to touch superannuation, in particular from the self-managed superannuation fund lobby, which has put the issue of super tax concessions at the very centre of its lobbying activities.
According to research by The Australia Institute, super tax concessions cost the government somewhere in the region of $30 billion a year, making it one of the second biggest budget costs. Those concessions go disproportionately to higher income earners.
Groups as diverse as the Greens, the Australian Chamber of Commerce and Industry, and even shock jock Alan Jones support a reduction in super tax concessions for the rich.
Want to see more stories from The New Daily in your Google search results?
- Click here to set The New Daily as a preferred source.
- Tick the box next to "The New Daily". That's it.








