THESE are the figures the government hopes will show that its rowdy superannuation rebels are putting Australia’s wealthiest savers ahead of urgent Budget repair.
And also ahead of government unity.
The rebels, reportedly including former prime minister Tony Abbott, have been shown the calculations, which Treasurer Scott Morrison insists prove 96 per debt of retirement savers would feel no pain from changes announced in the Budget.
Mr Morrison hopes Labor will back the changes — announced in May but yet to be approved by Parliament — to save about $2.5 billion over 10 years.
Most savings would come from reducing, but not eliminating, generous tax concessions. Some tax-free savings areas might instead be charged 15 per cent.
But first he has to get the votes of internal dissenters.
The figures have been used before, but their bulk release today will effectively confront in public the Coalition MPs who have been fighting the changes, even to possible extent of crossing the floor on them.
Their protests, damaging Prime Minister Malcolm Turnbull’s bid for post-election unity, are on behalf of just 4 per cent of Australia’s 16 million superannuation account holders, the figures reaffirm.
Some measures will affect fewer than 1 per cent.
For example, a central calculation shows “the richest Australians†on average make after-tax contributions to superannuation accounts of $282,000 over their income lifetime.
Mr Morrison wants to limit these contributions to a lifetime cap of $500,000.
The rebels are putting at risk the proposal to help, by $500 a year, the retirement savings of those earring $37,000 or less a year. That’s about 3.1 million workers, of whom 1.9 million would be women.
Women often find it hard to save for retirement because their work life often is interrupted and they earn low or part-time wages.
The average retirement/pension phase account balance for the richest Australians aged 65 and older is $1.36 million, compared to the $1.6 million transfer balance limit in the Budget.
The earnings on retirement accounts are still tax-free for balances up to that $1.6 million limit.
Further, the richest Australians make on average $18,000 in concessional contributions a year, well short of the $25,000 proposed annual cap.
And, the documents argue, the richest Australians aged 50 and over make an average of $21,000 in concessional contributions a year, significantly short of the $25,000 annual cap.