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Our Team this Year, the Masses Next

Wednesday, 10th May, 2006

High income earners are the natural constituency for the Liberal Party but looking after your own can be difficult in an election year. It was wise politics to give the handouts to them in this budget when the politics of envy cannot influence voting behaviour. The next budget is the one in which to target the greedy swinging voters.

The abolition of taxes when receiving superannuation payouts clearly benefits the rich. Most Australians are below existing thresholds where an exit tax is paid. This perhaps is one Government decision that Labor will oppose by arguing that the 15% tax on superannuation contributions on the way in is what should be got rid of.

Make too much of a thing about that this year, however, and Labor might find the Government doing it next year. Governments pinching good ideas is why Oppositions are loathe to come out with policies too early.