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Tony Burke defends changes to taxes on superannuation

Workplace Relations Minister Tony Burke has defended changes to taxes on superannuation, arguing tax concessions on retirement savings would soon cost more than the aged pension without intervention.

The government doubled the tax rate on super accounts with more than $3 million from 15 per cent to 30 per cent, with the changes set to come into effect from mid-2025.

Speaking to Sky News on Sunday, Burke said the changes put forward were only modest ones and necessary to lower spiralling levels of government debt.

How can we have a situation where we keep hurtling towards a time where superannuation tax concessions cost more than this age pensions, which is where we’re heading.

If you’ve got more than $3 million, good on you, you’ll still get a tax concession, it just won’t be as generous as for what it is for the 99.5 per cent of Australian balances.

The minister said those with wealthy super balances would have the next two years before the changes kick in to reorganise their finances if they want to.

We already have taxation on superannuation, it’s concessional, it’s already there, it’s an advantage to have your money in superannuation.

People know that we do need to raise additional revenue. We’ve been left with a trillion dollars of Liberal debt.

He also ruled out any tax changes on capital gains tax exemptions for the family.

– AAP