Has the Govt alienated its super base?
The Budget changes to superannuation may have succeeded in alienating a significant cohort of the Government's voter support base, according to new analysis released by Roy Morgan Research.
The analysis showed that by targeting reductions in tax concessions at people with higher incomes and higher superannuation balances, the Government had effectively targeted those most likely to vote for the Liberal/National Party Coalition.
The Roy Morgan analysis said that nearly two-thirds of voters (65.5 per cent) holding more than $1 million in superannuation were L/NP voters, as were almost half (46.8 per cent) with $150,000 to under $1 million.
"The proposed changes to superannuation in the budget have the potential to negatively impact these two groups which together comprise more than one in three (37.2 per cent) L/NP voters with superannuation," the analysis said.
The Roy Morgan analysis comes at the same time as a number of financial planners have written to Government MPs threatening to withdraw their support of the superannuation changes and their impact on pre-retirees.
In particular, the planners have cited issues with the $1.6 million cap for those already in excess of that, and the retrospective nature of the $500,000 non-concessional contributions.
Roy Morgan Research industry communications director, Norman Morris, said the company's research had shown that the Government faced the risk of losing some L/NP supporters, who currently dominated not only the $1 million-plus group, but all super balances over $150,000.
"Although most publicity and detail has naturally centred on the proposed budget changes to superannuation, the ALP have indicated that they would tax income from super above $75,000 per annum, and it is uncertain what other changes are planned," he said.
"With a long time to run before the election, both parties will need to come up with their final superannuation details in order for the voters to decide."
Recommended for you
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
Morningstar is going to offer research ratings of funds in the $3.5 trillion superannuation sector for the first time in response to demand from financial advisers.
Treasurer Jim Chalmers has opened a consultation into the design of the annual superannuation performance test, canvassing views on a range of reform options.
