ANALYSIS: Labor set a superannuation trap — and Dutton immediately took the bait
This cautious approach worked well in opposition. It was never going to last in government with a worsening structural deficit and spending pressures piling up.
First, only the very top end will notice it: 0.5 per cent of superannuation accounts, holding more than $3 million, will pay a higher tax rate on earnings above the threshold . Around 80,000 people are in that category today, but the $3 million threshold isn't indexed, so the number affected will grow over time.
Third, and most importantly in terms of de-risking the politics, the change won't kick in until mid-2025, after the next election. That gives voters a chance to boot Labor out if they are so aggrieved by this measure. This delayed start was also aimed at goading the Coalition into making an election commitment to restore the super tax breaks for multi-millionaires. The Coalition took the bait.
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