Minister for Financial Services and Superannuation Bill Shorten has come out swinging against the opposition’s plans to tinker with super, claiming that they will make 3.6 million Australians worse off
The policy in question is the Coalition’s plan to slash the low income superannuation contribution (LISC), which cuts contributions tax to zero for workers earning up to $37,000 and puts the money into their super fund.
According to Shorten, the LISC, which came into force in July, will build the wealth of low paid workers by almost $1bn a year – which will help take the pressure off the pension.
However, he has labelled the opposition plan to cut the LISC as a “tax hike” that will serve as “a kick in the guts to working mums and some of our lowest paid full time workers, who struggle to save for their retirement."
"Around one in three workers will pay up to $500 a year more in tax because of the Coalition's plans," he added. "The Coalition's tax hike will also discourage workforce participation, including among the 2.1 million women who benefit from the LISC.
"Sadly the Coalition's destructive negativity means they would rather reduce the wealth of 3.6 million workers than take money out of the pockets of billionaires."
According to Shorten, the 3.6 million Australians can expect to see their taxes rise under the Liberals include:
- Around 1.1 million workers in NSW
- Around 910,000 workers in Victoria
- Around 800,000 workers in Queensland
- Around 260,000 workers in SA
- Around 360,000 workers in WA
- Around 90,000 workers in Tasmania
- Around 30,000 workers in the NT
- Around 50,000 workers in the ACT
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