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Labor will lead the debate on super: Bowen

Shadow treasurer Chris Bowen says Labor intends to lead the debate on superannuation tax concessions if the Abbott government wants to dismiss it as a problem.

Mr Bowen is convening a meeting on Thursday of peak superannuation bodies, business, unions and community groups to talk about what can be done on the taxation treatment of superannuation.

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Treasurer Joe Hockey released a taxation paper on Monday to review the whole system, saying everything is on the table.

However, ministers since appear to be shying away from wanting to discuss the super concessions of rich people. 
Parliamentary secretary Steven Ciobo described it as “nickel and dime stuff” and that suggestions there was consensus for change as “rubbish”.

But new figures from the Association of Superannuation Funds of Australia show that the nation’s 76,000 wealthiest retirees are receiving just over $10 billion in super tax concessions a year.

There are 24,000 people who have more than $2 million each in their self-managed super accounts receiving about $216,000 in tax-free income stream payments each, or $5.2 billion in total.

Mr Bowen said the report showed the government was talking rubbish.
 He said the government’s own Murray inquiry into the financial system said super concessions are not well targeted and taxation arrangements should be reformed and put on a more sustainable footing.

“If the government chooses to act in a bipartisan fashion, we will co-operate, but the Labor Party also intends to lead the debate,” Mr Bowen told reporters in Melbourne.

Social Services Minister Scott Morrison said people invest over the course of their lives to try to take responsibility for themselves in retirement.
 “I think this is something we want to encourage,” he told reporters in Adelaide.

Assistant Treasurer Josh Frydenberg said superannuation needs to be looked at across the board, not just for high income earners as the Labor party would like.

Former assistant treasurer Arthur Sinodinos said the government should settle on a “few major changes” to superannuation and pursue them, rather than fiddling with the entire system.

The Liberal senator said any changes would need to start in the next term of government or beyond. 
He said the coalition recognised that superannuation rules were not for the purpose of tax minimisation or tax planning, but to encourage retirement savings.

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