JULIA Gillard has lashed out at the Opposition branding its positions on foreign investment and superannuation tax changes, crazy and dangerous and describing Tony Abbott as an “economic simpleton”.

The comments, which were unusually harsh from a government leader travelling abroad, came at the start of the annual Bo'ao Business Asia Forum, which has been dominated behind the scenes by the sudden escalation of hostilities on the Korean peninsula.

Prime Minister Julia Gillard: Lashed out at the Opposition. Credit:AFP

Responding to comments made by the Australian Opposition Leader likening Labor's moves to tax high-end superannuation earnings to the bank accounts tax being levied in Cyprus, Ms Gillard's anger was obvious.

“Well this just shows how Mr Abbott is unfit on economic matters, this is a crazy statement, that no person of reason could make,” she said in Bo'ao.