Coalition divisions widen on superannuation

The article reports a split within the Coalition: Opposition finance spokesman Andrew Robb said the Coalition’s superannuation position could not be maintained unless budget cuts were found to fund it, while Opposition Leader Tony Abbott stated the Coalition would not rescind legislation that increases the compulsory superannuation contribution rate if it passes Parliament. Mathias Cormann, the Coalition’s superannuation spokesman, had earlier commented on the contribution increase as well.

According to the article, Tony Abbott said the Coalition has decided it 'won’t rescind the legislation should it go through the Parliament.' However, other Coalition figures like Andrew Robb have cast doubt, saying the policy could not be maintained without identifying funding or budget savings.

Andrew Robb said the Coalition’s superannuation policy could not be maintained unless budget cuts were found to support it. He stated the Coalition would not proceed with this or other programs without identifying where the funding will come from.

The article says Joe Hockey (the Treasury spokesman) and Andrew Robb are costing all Coalition policies as part of an effort to find about $70 billion of savings. This costing work is being used to determine how or whether policies, including superannuation measures, can be funded.

The article highlights disagreement among Coalition figures over funding and the party’s position, which suggests there is uncertainty around whether any changes will be blocked, retained, or require offsetting savings. Tony Abbott has said the Coalition would not rescind the increase if the legislation passes, but Andrew Robb has emphasised funding constraints.

The key figures named are Andrew Robb (Opposition finance spokesman), Tony Abbott (Opposition Leader), Mathias Cormann (Coalition superannuation spokesman), and Joe Hockey (Treasury spokesman). The article describes differing views among them on the superannuation contribution increase and funding.

The article states Robb and Joe Hockey are costing Coalition policies to try to identify $70 billion in savings. Robb said they will not move forward with programs, including superannuation changes, without identifying how they will be funded.

Based on the article, investors should watch for the outcomes of the Coalition’s policy costing work (the search for $70 billion in savings) and any parliamentary progress on the legislation that increases the compulsory superannuation contribution rate. Those developments will clarify whether the Coalition keeps, modifies or seeks funding offsets for the policy.