The spate of superannuation tax changes proposed in this year’s federal budget was met with opposition from many Liberal Party faithfuls – in particular the $500,000 cap on non-concessional contributions, effective from budget night and backdated to 2007.
Federal Treasurer Scott Morrison signalled in the lead-up to the election and the budget that the government was intent on sticking to proposals to make superannuation ‘fairer’ for Australians, involving a reassessment of tax incentives.
However, over the weekend Mr Turnbull hinted that the proposals are up for change and tinkering.
“The reforms are important but obviously in the implementation and transition there is work to be done – there always is with tax changes, and they will go through the normal cabinet and party room process,” Mr Turnbull said.
“I am listening very keenly and carefully to concerns that have been raised by my colleagues, and of course by other people in the community as well,” he said.
Reports from The Guardian noted that Mr Turnbull is set to come under intense pressure from his party to rethink his proposed superannuation reforms.
Changes to the structure of tax incentives around superannuation have been broadly accepted across the financial services sector; however, a significant number of professionals, lobby groups and associations have taken issue with the retrospective elements of some proposals, in particular the abovementioned $500,000 cap and the $1.6 million cap related to the pension phase.