House debates Questions without Notice
Superannuation
Bill Shorten Maribyrnong, Australian Labor Party, Leader of the Opposition
3:03 pm
My question is to the Prime Minister. I refer to the Prime Minister's ironclad superannuation policies that will see a $500,000 lifetime non-concessional contribution cap applying from 1 July 2007. Prime Minister, as your new changes to super apply to investment decisions made 10 years ago, in good faith and under previous laws, how is this change not retrospective?
Malcolm Turnbull Wentworth, Liberal Party, Prime Minister
The honourable member would be well aware that a retrospective change to the tax laws is one which has the result that a transaction in a past tax year, which was not taxed or which incurred a particular rate of tax, is—because of the retrospective law—subject to a different, and typically a higher, rate of tax. There is no retrospectivity in the proposed changes to the non-concessional cap whatsoever.