Addressing a NSW Business Chamber function this morning, Mr Morrison said that his party’s tax cuts — the biggest in personal income tax in about 10 years — represent tax reform in Australia.
Industry bodies have long been lobbying for the government to extend tax changes beyond cuts and concessions into ground-up systemic reform, since the 2010 Henry Review found 10 taxes contribute to 90 per cent of the total revenue take.
The closest Australia has come to a tax reform was the Tax White Paper process, kick-started by former Liberal prime minister Tony Abbott. The first discussion paper was released in March 2015, and has since been untouched.
Mr Morrison also reaffirmed his party’s position on taxes in superannuation, saying that under his government, there will be no increase on taxes in the superannuation environment. During his time as treasurer, Mr Morrison was the architect of the 2016 superannuation reforms, the biggest since the era of prime minister John Howard and treasurer Peter Costello.
Similarly, the Labor Party has promised no adverse changes to superannuation under a government led by Bill Shorten.
So far, Labor’s planned changes to superannuation include reintroducing the 10 per cent test, which essentially restricts the ability for individuals to claim tax deductions for personal contributions.
Changes to the division 293 tax threshold, at which high-income earners pay an additional 15 per cent tax on concessional contributions, would also be lowered from $250,000 to $200,000 under Labor.
Labor is also proposing lowering the non-concessional contribution caps and removing the provision for catch-up contributions.