Treasury clarifies super tax concession position
The Federal Treasury has sought to take the heat out of the debate over the cost of superannuation tax concessions by acknowledging that their removal would not result in commensurate savings for the Government.
The message was sent by Treasury deputy secretary, Rob Heffron who said that the Treasury's Tax Expenditure Statement was too often being misinterpreted as being some form of policy message.
"It is not a policy message," he said during a forum at the SMSF Association conference in Melbourne.
Heffron likened discussion of the implications of the cost of superannuation tax concessions to suggesting the removal of the age pension.
"We all know that if we removed the age pension then that money would not find its way back to the Government because the people receiving the age pension would go onto other benefits," he said. "The same applies with respect to the superannuation tax concessions."
Heffron's comments came just a day after SMSF Association chief executive, Andrea Slattery warned about the consequences of removing the superannuation concessions.
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