Cuts to super ‘a kick in the guts’: Shorten

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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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Comments
  • Property Mavens says on 18/09/2012 02:53:46 PM

    Whilst I don't necessarily agree with the prospective action being proposed by the Coalition, to clarify any changes to the LISC based on the comments above are not in fact a tax hike, but an equalisation to the tax that ALL workers are currently subjected to within their superannuation funds. To make reference to billionaires is inflammatory and has no relevance in this matter. Any reference to tax increases should be clarified in that they are not income tax increases but contribution tax equalisation.

  • graeme says on 18/09/2012 04:49:44 PM

    Shorten is scare mongering again, because he knows he will be out of a job next election.

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