Simon Crean has reportedly vowed to oppose any move by the govt to tax earnings on superannuation accounts.
Simon Crean is against changes to superannuation. File picture: John Feder Source: News Limited
DUMPED cabinet minister Simon Crean says there is widespread discontent in the Labor caucus over a potential plan to raid superannuation contributions and earnings in the May budget.
Mr Crean, who was integral in bringing on last month's leadership showdown between Julia Gillard and Kevin Rudd, said this morning he would oppose any moves by his own party to tax superannuation retrospectively.
"I don't have a problem if we are going to improve adequacy going forward," Mr Crean told ABC News 24.
"But we have got to draw the line if there is any attempt to tax retrospectively what people have accumulated because that is tantamount to taxing people surpluses – your surpluses – to fund our surplus.
"That's not on."
Asked if a lot of people within the Labor caucus shared his concern over potential changes to superannuation by Wayne Swan in the May 14 budget, Mr Crean responded: "They do".
"I am not too sure at this stage what it is that is being proposed by those in the cabinet that are speaking about this, what I urge them to do is frame this debate sensibly," he said.
Speculation has mounted that Labor plans to raid the superannuation contributions and earnings of wealthy Australians in order to help pay for some of its key policies like the Gonski education reforms and the National Disability Insurance Scheme.
Two weeks ago Mr Crean sat in cabinet as Regional Australia minister. He was sacked by Ms Gillard after publicly calling for a leadership spill between her and Mr Rudd.
Last night Opposition Leader Tony Abbott said he couldn't guarantee an incoming Coalition government would repeal any changes to superannuation.
He said his party would oppose such changes but if passed they may not be able to be repealed immediately.
"What we can't do is solve all the problems that this bad government has created overnight," Mr Abbott told Sky News.
"There are many things that this government has done that we don't like but it will take time to repair the damage that this government has done."
Asked by News Limited this morning if he would consider crossing the floor if the superannuation changes came to a vote in parliament, Mr Crean said he was not getting ahead of himself.
"I have never threatened to cross the floor on any issue and I am not going to start now," he said.
"Let's not get ahead of ourselves. Let's frame the argument on the debate."
Mr Crean wouldn't say if he had received any feedback from Julia Gillard or Wayne Swan over his comments on superannuation.
"I've said what I have so say, so let's just leave it at that," he said.
The government has been accused of engaging in class warfare over retirement savings, with the opposition warning Labor is planning a "sneak attack" on super funds in the May budget, The Australian reports.
Trade Minister Craig Emerson on Sunday said his party had no plans to lift taxes on the superannuation of ordinary Australians but that super savings of the "fabulously wealthy" should be debated.
"People who are fabulously wealthy gaining effectively an advantage by putting their money into superannuation and being taxed at 15 per cent, where the everyday Australian may be facing a tax of 30 per cent, I think does enliven a debate," he told Sky News on Sunday.
"We are not seeking to impose new taxes on the superannuation accounts of ordinary Australians.
"But there is a legitimate debate about the very top end."
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