The federal government has ditched a raft of Labor’s taxation changes, including taxes on individual superannuation pension earnings above $100,000 and a $2000 cap on self-education.
Treasurer Joe Hockey and his assistant, Arthur Sinodinos, this morning announced the changes as a “step forward in clearing the desks”.
Hockey said the decision to remove Labor’s tax on superannuation pension earnings above $100,000 was because the initiative was “undeliverable”.
“The fact is that it was nigh impossible for the private sector to properly identify who was responsible for that liability and how that was assessed,” he said.
“Super is crying out for stability and we are delivering that. People are saving for their retirement and we’re encouraging that.
“You cannot use superannuation as a milking cow on an ad hoc basis … this proposal which we are dumping today was not only massively complicated but it was basically undeliverable.”
Sinodinos said the advice the government received regarding the superannuation changes was that they were complex to administer
Written by Kate Kachor for the financial observer.