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An enthusiastic Karl Stefanovic criticized Bill Shorten for Labour’s push for pension reform.
The Today Show host clashed with the Minister for Government Services on Friday, accusing the government of introducing a ‘new tax’ on high earners.
He took issue with reports that the government was considering capping tax breaks on retirement savings of more than $3 million.
The proposal is among several changes the Labor government is considering after it launched a consultation on reform of retirement savings laws this week.
An enthusiastic Karl Stefanovic has criticized Bill Shorten over a proposal to introduce massive retirement reforms.
Addressing a bee-themed conference on Thursday, Deputy Treasurer Stephen Jones compared the government’s proposal to reduce the number of Australians withdrawing their super early to handling ‘honey’ in the best interests of a ‘hive’ ‘.
‘In the self-managed sector, there are over 600,000 funds that have about $870 billion in retirement savings, that’s a lot of honey. We want to make sure there is plenty of honey for everyone.’
Stefanovic disagreed with the comparison and compared the metaphor to communism, where the collective is prioritized over individual wealth.
“I didn’t realize that our super honey was for the collective, comrade,” he joked.
The Today Show host criticized suggestions that the government would cap tax concessions by labeling it a ‘new tax’.
He said Mr Jones seemed almost to confirm that change was being seriously considered when he made the comparison of retirement to honey on Thursday.
“He confirmed that the government is looking to impose higher taxes on funds over $3 million, just in case, someone missed the bee buzz, that’s a new tax, isn’t it?” he said.
The grant costs $53 billion a year, and the wealthiest Australians invest money in super paying a favorable rate that is well below the marginal tax rate of 45 per cent for those earning more than $180,000.
Two-thirds of these awards go to the top 20 percent of income earners, and less than 1 percent of people have super savings of more than $3 million, and that group has an average pool of $5.8 millions.
Shorten defended the decision by questioning whether it was fair for taxpayers to subsidize high earners.
‘There are about one percent of people who have more than $3 million in retirement. The average for this group of people is $5.8 million,’ she said.
“I think he was raising the question, should taxpayers subsidize someone who already has almost $6 million in their retirement account?”
3AW presenter Neil Mitchell sided with Stefanovic, calling the proposal “class warfare”.
‘It’s a new tax, come on Bill, it’s a new tax, isn’t it? Aren’t you going to try turning that one around? he said.
Shorten defended the decision by questioning whether it was fair for taxpayers to subsidize high earners.
Mr. Shorten shot and stabbed Mitchell for his comment.
First of all Neil. I’m glad she stepped up to defend people with $6 million in their retirement account,” he said.
“The fact is that we said in the last elections that we want to legislate the goal of retirement.”
Mitchell applauded the idea that high earners should be punished.
‘These horrible people who have been successful enough to get money into their super account. What horrible people succeed,” she said.
Stefanovic criticized Shorten for breaking an election promise after the Labor government promised no massive changes.
Shorten said he was not confirming that the tax concession cap would be approved and that it was still in the discussion stages.
‘Do you think it’s right that people who go to work every day pay their taxes, should they pay their taxes to give a concession to someone who has several million dollars in their account?’ he said.
Treasurer Jim Chalmers seemed to suggest Wednesday that the tax and early access changes would hardly be sweeping.
“We are not contemplating major changes in retirement,” he told Sydney radio station 2GB.
“We think there should still be generous tax breaks for people to save for retirement.”