Detail of Govt's superannuation tax questioned
The Federal Opposition has called on the Government to clarify who is or is not covered by its Federal Budget changes reducing the concessional superannuation tax treatment for those earning over $300,000.
The call follows on from Senate Estimates hearings last week during which it was claimed statements by a senior official within the Department of Finance and Deregulation had clouded the issue.
The Opposition spokesman on Financial Services, Senator Mathias Cormann, said clarity was needed in terms of how the changed superannuation tax arrangements would be applied, and therefore how much they would raise.
Cormann said that the confusion around the revenue implications of the changes had been heightened by contradictory statements made by the Minister for Finance, Senator Penny Wong and the Minister for Financial Services, Bill Shorten.
He said this confusion had escalated as a result of evidence to Senate Estimates by the secretary of the Department of Finance and Deregulation, David Tune, that the tax might not apply to some judges who were members of constitutionally-protected super schemes.
"If Mr Tune is right, then both Penny Wong and Bill Shorten have got their own Government's policy wrong," Cormann said.
He said Tune had also suggested the necessary legislation might not be in place by 1 July 2012, which is the proposed starting date of the new tax.
"The confusion over who is likely to pay and who isn't puts into question Treasury's projected revenue estimates for this new tax and raises serious doubts about Labor's ability to deliver its promised Budget surplus in 2012/13," Cormann said.
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