Turnbull well placed to fix super concessions

Turnbull well placed to fix super concessions

It may well be the case that superannuation tax concessions are inequitable, but only a conservative government will have the political capital to change them, says Blue Sky Alternative Investments.


Speaking to InvestorDaily, Blue Sky chief investment officer Alex McNab said that for an Australian government to change the generous tax concessions for wealthy Australians would require a 'Nixon to China' moment.

Just as former US president Richard Nixon was the only US leader who could visit Mao Zedong, only the Coalition can change the tax settings on superannuation concessions, Mr McNab said.

"Because if it’s a Labor government doing it then naturally it will be viewed as class warfare – and there would be some great headlines around that!" he added.

On superannuation changes more generally, Mr McNab said it would make sense for the government to legislate a number of "meaningful changes to super" at once.

"In some ways it’s the tinkering that puts people off. Little change here, a little change there, you never quite know where you’re going to land," Mr McNab said.

"Whereas if you rip the band-aid off quickly I think people won’t like it, but they’ll accept it and they can make plans around the new regime."

Mr McNab was very complimentary about the cabinet changes made by Mr Turnbull, pointing out that the immediate test for new Treasurer Scott Morrison and Assistant Treasurer Kelly O'Dwyer will be to respond to the Financial System Inquiry (FSI) final report.

The Abbott government was due to respond to the FSI report the day after Malcolm Turnbull took power.

"[The FSI response] would be right up the top of Kelly O'Dwyer's agenda and it would be reasonably high on Scott Morrison's agenda," Mr McNab said.

"They absolutely have the right to review it and make sure they’re personally comfortable with it. You’d just love to see it not drag on too long."

 

Turnbull well placed to fix super concessions
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