Abbott a charmer after Robb snub

TONY Abbott yesterday lavished praise on a furious Andrew Robb after freezing his finance spokesman out of the decision not to oppose the government's planned boost to compulsory superannuation.

By InvestSMART · 8 Nov 2011

By InvestSMART ·
8 Nov 2011

Comments

TONY Abbott yesterday lavished praise on a furious Andrew Robb after freezing his finance spokesman out of the decision not to oppose the government's planned boost to compulsory superannuation.

The charm offensive came after Mr Robb signalled that he would speak against the increase in the superannuation guarantee from 9 per cent to 12 per cent within the shadow cabinet on the ground that the Coalition and the country cannot afford it.

"I'm determined that as a government the Coalition will live within its means, but I'm simply not going to be drawn into discussions about internal matters," he said.

Ironically, Mr Abbott nominated Mr Robb's fiscal rigour during his address at a roundtable on manufacturing hosted by the Menzies Research Centre.

Mr Robb remains angry that he was excluded from a phone hook-up of senior figures on Friday that decided to walk away from the plan to rescind the super boost, which the government has linked to the passage of its mining resources rent tax.

Liberal insiders insist there was no conspiracy or snub and the normal practice of the leadership group and the spokesman directly concerned in a decision in this case superannuation spokesman Mathias Cormann had been followed.

Earlier yesterday, Mr Abbott defended the decision, which will reduce government revenue by $740 million over the forward estimates because money contributed to super is taxed at a much lower rate than income.

"What we are proposing to do is entirely consistent with the policy of the Coalition over the last decade," he said. "We don't initiate these superannuation changes, but once they're in place we don't roll them back."

Liberal frontbencher Malcolm Turnbull last night declined to endorse Mr Abbott's rejection of statutory individual contracts. Mr Turnbull said there should be maximum flexibility in the workplace. He also said the Coalition shouldn't be frightened of the "WorkChoices bogey".

Appearing on the ABC's Q&A, Mr Turnbull said the statutory individual contract issue would be addressed closer to the election but Mr Abbott has been categoric that they will not be part of his policy.

Go to Google News, then click "Follow" button to add us.

Share this article and show your support

Frequently Asked Questions about this Article…

What happened between Tony Abbott and Andrew Robb over the superannuation guarantee increase?

According to the article, Tony Abbott praised Andrew Robb publicly after excluding him from a senior phone hook‑up that decided the Coalition would not oppose the government’s planned boost to the superannuation guarantee. Robb had signalled he would speak against the increase, and remained angry at being left out of the decision.

What is the proposed superannuation guarantee increase discussed in the article?

The article refers to a planned increase in the compulsory superannuation guarantee from 9% to 12% of wages.

How does the superannuation boost affect government revenue?

The decision not to oppose the super boost will reduce government revenue by about $740 million over the forward estimates, because money contributed to superannuation is taxed at a much lower rate than income.

Why did some Coalition figures walk away from plans to rescind the super boost?

The article says the leadership group decided to walk away from the plan to rescind the super boost; that plan had been linked to the passage of the government’s mining resources rent tax. Insiders said the normal practice of consulting the leadership and the directly concerned spokesman (in this case superannuation spokesman Mathias Cormann) was followed.

Who is the Coalition’s superannuation spokesman mentioned in the article?

The article names Mathias Cormann as the Coalition’s superannuation spokesman involved in the decision process.

How is the superannuation decision linked to the mining resources rent tax?

The article states the government had linked the superannuation boost to the passage of its mining resources rent tax, and the Coalition’s internal decision to walk away from rescinding the boost was made in that context.

What did Malcolm Turnbull say about statutory individual contracts and workplace flexibility?

Malcolm Turnbull declined to endorse Tony Abbott’s rejection of statutory individual contracts. He said there should be maximum flexibility in the workplace and that the Coalition should not be frightened of the “WorkChoices bogey,” adding the issue would be addressed closer to the election.

What should everyday investors take away from this political disagreement over superannuation policy?

The article highlights that internal party disputes and leadership decisions can influence superannuation policy and taxation outcomes. Everyday investors watching superannuation rules, tax settings and election‑time policy announcements may want to follow party positions and official statements as they can affect retirement savings settings.