Minister ‘respectfully' rejects Paul Keating's super tax warning
A minister has brushed off a warning from former prime minister Paul Keating that Labor's proposed super tax could penalise younger workers down the track.
Mr Keating, who was key in setting up Australia's superannuation system, released a statement on Monday celebrating the increase of compulsory super contributions to 12 per cent – a target he envisioned.
But he cautioned that younger generations would consequently save faster, with many likely hitting the $3m mark in the 2050s.
The Albanese government's tax, as proposed, would not be indexed, meaning more Australians than the initial 80,000 put out by Labor would be captured as the decades go on.
Employment and Workplace Relations Minister Amanda Rishworth on Tuesday praised Mr Keating as the 'architect of superannuation' but disagreed with the Labor reformist.
'First, I would say that Paul Keating is a great Labor person and was the architect of superannuation, and that's why he is absolutely cheering on us getting to 12 per cent superannuation guarantee that's happening today,' Ms Rishworth told Nine's Today.
'In terms of the superannuation proposals that we have put forward around people with very, very large balances of $3m.
'Of course, we listen to different views and we listen to Paul Keating respectfully as we do others.'
She noted that 0.5 per cent of super account holders 'are currently affected'.
'I think a lot of Australians feel that they are very, very far off from a balance of $3m,' Ms Rishworth said.
'This is a modest change and it is about sustainability in our super system.'
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