Furious Today Show blow-up as Jim Chalmers backs AWAY from radical superannuation shake-up

Former deputy prime minister Wayne Swan has angrily defended Treasurer Jim Chalmers against accusations he backed away from big changes to superannuation.

Dr Chalmers, who was Mr Swan’s chief-of-staff when he was Labor treasurer a decade ago, on Wednesday appeared to suggest the changes would hardly be radical.

‘We’re not contemplating major changes to superannuation,’ he told Sydney radio 2GB.

Chris O’Keefe, 2GB’s drive presenter who interviewed Dr Chalmers, told the Today Show the Treasurer was now backpedaling because ‘this was all blowing up in his face’.

‘It’s typical Labor politics. He flew the kite, saw which way the wind blew, realised the kite was flying back at him and said “I better water this down”. That is exactly what happened,’ O’Keefe said.

Mr Swan, who is now the Australian Labor Party’s national president, was livid.

With due respect, that’s crap,’ he said. 

‘This is a simple proposal, a very sensible clean-up, but it’s very modest.’

Dr Chalmers on Wednesday afternoon downplayed suggestions the federal government would increase the tax rate on extra contributions to superannuation. 

They are currently capped at a generous rate of 15 per cent for additional payments of up to $27,500 – and Dr Chalmers told Radio 2GB that a change is ‘not on the table’. 

He also denied that Labor would reduce the annual income threshold for that lower tax rate from $250,000 to $200,000, saying ‘that’s not something we are proposing or considering either’. 

Treasurer Jim Chalmers on Wednesday afternoon hosed down suggestions the Federal government will increase the tax rate on extra contributions to superannuation

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Wayne Swan, the ALP president, defended Jim Chalmers’ remaining plan to restrict the number of ways Australians can claim their retirement savings early and consideration of a proposal to cap tax concessions for those with more than $3million in their super accounts.  

Denying it was ‘personal’ given Dr Chalmers once worked for him, Mr Swan said lies and distortions on the matter of super ‘don’t reflect well on the people making them’.

O’Keefe bit back, saying Dr Chalmers’ ‘wide-ranging think piece … meant nothing’.

Chris O’Keefe criticised the Treasurer for changing his plan after seeing ‘this was all blowing up in his face’

‘It does mean a lot,’ Mr Swan replied.

‘If we legislate the purpose of super, which is for retirement, we protect the retirement savings of millions and millions of Australians, a pretty important thing to do.

‘People like you beat it up. It gets out of proportion.’

Not backing down despite repeated interjections from host Sarah Abo, O’Keefe said Dr Chalmers’ messaging this week had been all over the place and had scared ‘the living daylights’ out of people concerned about their retirement eggs.

Abo called for everyone to ‘cool it down a little bit’.

‘This feels like the leader’s debate, I can’t get a word in,’ Abo lamented.

Opposition Leader Peter Dutton appeared on the program shortly after and again attacked Dr Chalmers’ plan.

He warned that while the change to tax breaks might just affect the 36,000 people with more than $3million in their super accounts to begin with, ‘with Labor it never stops there’.

‘If Labor runs out of revenue sources, they’ve then got to come after the next rung (of super accounts),’ Mr Dutton said.

Wayne Swan hit back at O’Keefe saying his opinion was ‘crap’

‘There’s a lot of Australians who are very aspirational, who work hard, and for many they’ll have drawn down out of their superannuation to pay their mortgage off so they don’t have those payments in retirement as well.

‘People have pumped money into superannuation, and the uncertainty that the Prime Minister is creating I think just shows they can’t manage the budget or the economy.’

Elsewhere, shadow treasurer Angus Taylor accused the government of going back on its election commitment not to make ‘major changes’ to superannuation.

‘This is Australians’ money, not the government’s money to play with. I know Australians feel that very strongly, particularly at a time like this when there is real pressure on Australians’ households,’ he told Channel 7.

‘Money in super should be invested in your interests, not for the government to tax and spend because they have a hole in their budget.’