Julia Gillard has again failed to quell concern over speculation her government will raid superannuation in next month's budget. Source: News Limited
JULIA Gillard has again failed to quell concern over speculation her government will raid superannuation in next month's budget, saying any decisions that affect the sector will be revealed "at the proper time".
As experts slam Labor's plan to hit higher earners with increased taxes on superannuation, the Prime Minister said she would not be drawn on the speculation sweeping the sector.
And another Labor figure, Ed Husic, who resigned following last month's leadership showdown, has added his voice to the debate.
Asked if any changes to superannuation could be made before the May 14 budget Ms Gillard said this morning: "We'll make budget decisions and make them available publicly at the proper time."
"I'm not going to get involved in the speculation and rumour that is there at the moment but I can be very clear with people about the set of principals that guide us," she told ABC radio.
"They are the principals about sustainability and decent retirement incomes."
The government is looking at targeting disproportionate tax concessions for the top 1 to 2 per cent of richest Australians in next month's budget.
Superannuation Minister Bill Shorten last night sought to hose down the concern being expressed by the sector, denying the need to save money in the budget was a key driver for superannuation reforms.
Pressed on the "fabulously wealthy" tag that her senior ministers have placed on those likely to be hit by superannuation changes, Ms Gillard this morning would not name an income figure.
"I am not going to get into income ranges," she said.
"What people know is that super is a Labor creation, it is only in this country because of the Labor party and consequently I think what people know is that when Labor looks at super we do it from a set of values and principals which are always about advantaging working people and keeping the system sustainable and secure."
Former government whip Ed Husic, who resigned his position after backing Kevin Rudd to challenge Julia Gillard for the Labor leadership, this morning said the government should be doing everything it could to help, not hinder, superannuation contributions.
"We should do everything we can to promote and not hinder people's ability to put money into superannuation," Mr Husic told Sky News.
He said the concerns expressed by Simon Crean and others about superannuation had been "important" to try and nut down what changes could be coming.
Opposition Leader Tony Abbott says the coalition can't commit to unwinding potential Gillard government changes that might raise the tax rate on superannuation earnings for wealthy Australians.
The government has been under fire over ongoing reports it wants to boost taxes on the super of wealthy Australians to find extra money for schools funding and the National Disability Insurance Scheme.
One option being considered is increasing the 15 per cent tax rate for high income earners, after last year's budget included a hike to 30 per cent for those on more than $300,000 a year, Fairfax Media has reported.
He said a coalition government could not pledge to roll back any changes made to super tax rates.
"I can't make pre-emptive commitments in advance of knowing exactly what the budgetary position is," Mr Abbott told Fairfax Radio Network.
"We will fight seriously against any of the changes the government seems to have in mind.
"But we can't promise to undo all of the damage that this government has done."
He said the government was "raiding the people's savings to fund its spending".
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