CANBERRA -- Acting Opposition Leader Tanya Plibersek has slammed the Turnbull Government's back down on proposed superannuation changes as an "incredible capitulation" to conservative Coalition backbenchers.
A day after securing Labor support for the passage of the $6.3 billion omnibus bill, the government has dumped a key but controversial budget measure, a lifetime cap of $500,000 on non-concessional super contributions.
The proposal of a lifetime cap was unpopular with the Coalition backbench including Queensland MP George Christensen who threatened to cross the floor.
— Amelia Brace (@AmeliaBrace) September 15, 2016
Some Liberal party supporters, angry over the super plan, refused to contribute to the 2016 election campaign.
Labor has not seen details of the changes, but acting Labor Leader Tanya Plibersek has told Huffington Post Australia that "absolutely iron clad guarantees" from the Turnbull Government are worthless.
"It is an incredible capitulation," Ms Plibersek said.
"I think it is instructive that George Christensen is out there saying he's got everything he wanted in these superannuation changes.
"It is a further confirmation that Malcolm Turnbull has no power and no authority within the Liberal Party or within the National Party."
Arch-conservative George Christensen says Malcolm Turnbull has exceeded his expectations as PM #auspol
— Bevan Shields (@BevanShields) September 15, 2016
Under the changes announced Thursday by Treasurer Scott Morrison;
- The $500,000 lifetime non-concessional cap will be replaced by a new measure to reduce the existing annual non-concessional contributions cap from $180,000 per year to $100,000 per year;
- Individuals aged under 65 will continue to be able to 'bring forward' three years' worth of non-concessional contributions in recognition of the fact that such contributions are often made in lump sums;
- Individuals with a superannuation balance of more than $1.6 million will no longer be eligible to make non-concessional (after tax) contributions from 1 July 2017.
Mr Morrison described the changes as "fairer" and "more flexible" and said the government wants to help people achieve the "trifecta of Australian dreams" -- having children, owning your own home and saving for your retirement.
Ms Plibersek said Labor will have a close look at the superannuation proposal, but has indicated the Prime Minister will not get an easy ride on super.
"Malcolm Turnbull is desperate for wins, as he sees them," she told HuffPost Australia.
"All he is doing really is showing he has no authority within his own party room that he is prepared to cave in on everything he has ever believed in.
"What does Malcolm Turnbull actually stand for?"