Monday 18 July 2016

Turnbull faces party room pressure over superannuation and Liberal campaign

Extract from The Guardian

Prime minister will hold first meeting of MPs and senators since winning a wafer-thin majority in the election and is likely to face criticism from some

Leader of the National party Barnaby Joyce, National Party deputy Leader Fiona Nash, Liberal party deputy leader Julie Bishop and prime minister Malcolm Turnbull.
Leader of the National party Barnaby Joyce, National Party deputy Leader Fiona Nash, Liberal party deputy leader Julie Bishop and prime minister Malcolm Turnbull. Photograph: Mick Tsikas/EPA
Malcolm Turnbull will come under intense pressure to change his superannuation reforms in a marathon party room meeting, which will also involve top party strategists facing frustrated MPs critical of the election campaign.
On Sunday, the prime minister laid the groundwork for minor changes to the superannuation reforms, which seek to wind back generous tax concessions.
“The reforms are important but obviously in the implementation and transition there is work to be done – there always is with tax changes and they will go through the normal cabinet and party room process,” Turnbull said.
“We are listening very keenly, I am listening very keenly and carefully to concerns that have been raised by my colleagues and of course by other people in the community as well.
“There is a process being undertaken, but it is important to recognise that is always the case.”
Coalition MPs and senators are currently returning to Canberra for a post-election party hosted by Malcolm Turnbull at the Lodge. It is understood former prime minister Tony Abbott will not be attending due to family commitments.
The party room meeting, at 9am on Monday, will be the first formal meeting since the election campaign, which the Coalition won by a wafer-thin majority.
The Liberal party federal director, Tony Nutt, and pollster Mark Textor will both address the meeting to report on the campaign in the face of strong criticism in some quarters.
The former defence minister David Johnston and Canning MP Andrew Hastie have been among those Coalition members who have criticised the campaign strategy.
Johnston described the campaign as “tepid” and said there should have been more hard hitting, negative campaigning, though he supported the leadership change from Abbott to Turnbull.
The party room meeting is also expected to discuss the superannuation reforms, which some MPs blamed for the Coalition’s poor result.
The Liberal members and senators will meet for two hours before the entrance of Nationals MPs and senators at 11am. The meeting is expected to go until mid afternoon.
The element of the superannuation changes causing most angst in the Coalition party room is the proposed $500,000 lifetime limit on after-tax contributions backdated to 2007. Turnbull and the treasurer, Scott Morrison, have claimed this is not retrospective but a section of his party disagrees. The government is reportedly considering exemptions to this rule, such as inheritance or for the sale of long-held property and shares.
The key agitators for change to the superannuation reforms include Tony Abbott supporters such as dumped minister Eric Abetz, outspoken conservative backbencher Cory Bernardi and Queensland MP George Christensen. Western Australian MP Liberal senator Chris Back has also suggested the Coalition’s campaign had been damaged by the reforms.The meeting will precede the announcement of the new ministry, which is necessary given Turnbull has to replace three Liberal ministers or assistant ministers who lost their seats – Richard Colbeck, Peter Hendy and Wyatt Roy.
Asked if there would be any tension during the meeting, Turnbull said: “We always have very constructive meetings in the Liberal party and when we meet as a coalition.”
Turnbull was also asked on Sunday if he donated $1m to the Liberal party campaign, as was reported in the Australian but refused to answer.
“All will be disclosed in accordance with the law. It is very important that we do that precisely and accurately, and in accordance with the act,” Turnbull said.
The meeting is also expected to re-endorse Malcolm Turnbull as leader and his deputy leader Julie Bishop, who confirmed she would renominate but said she never took anything for granted.
“I don’t believe the prime minister intends to make major changes to the cabinet,” Bishop said. “It’s working effectively, well, and he did say before the election, that he expected to take that team to the election and that would be the cabinet ministerial team after the election, subject to people winning their seats.”
Bishop acknowledged she had spoken to many colleagues, some of whom were frustrated by the result.
“People were frustrated, some disappointed by the result, understandably, a number of very talented and good people including a number of female members of parliament lost seats,” Bishop said.
“So of course there is disappointment. I also detect a great sense of getting on with governing in the interests of all Australians and that’s what people are saying to me.”
Asked whether the prime minister would bring Tony Abbott back to the ministry to make a contribution, Bishop said “there are many ways that a contribution can be made”.
“We did lose a couple of ministers, but I don’t expect there to be many changes other than that is required to honour the agreement with the Nationals,” Bishop said.
The Nationals won the seat of Murray at the election and lost none of their members, changing the number of ministry positions to which they are entitled. The Nationals are expecting one extra cabinet position and one in the outer ministry.
According to party process, Labor will meet on Friday to vote for its 30 ministry positions once the Coalition ministry has been announced. After that, Bill Shorten will decide which positions are allocated. 

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