24 August 2016
Media Release - #2016070, 2016

Labor seeks to deny Australians fairness and flexibility in superannuation

Joint media release with
The Hon Kelly O'Dwyer MP
Minister for Revenue and Financial Services

Labor's announced changes to superannuation today will hollow out crucial support designed to assist more Australians to be independent in their retirement.

The Coalition Government's reform of superannuation will make the super system fairer, more flexible and help more Australians in their efforts to be self-sufficient in retirement, consistent with the purpose of superannuation as proposed by David Murray in the Financial System Inquiry.

All of our changes have been about addressing that purpose and ensuring that every single tax concession we provide on superannuation is working harder to support that purpose.

By failing to back our changes on allowing catch-up concessional super contributions; harmonisation of contribution rules for those aged 65 to 74 and extending tax deductions for personal super contributions, Labor have demonstrated a lack of understanding of the real changes in working patterns that have been occurring in our economy and our communities.

Labor's policy is bad for women, it's bad for carers, it's bad for contractors, bad for small businesses and the people who work for them, bad for parents juggling the work-life balance who want to provide for their retirement and bad for older Australians.

Their changes are more suited to the economy of the 1970's than a 21st Century economy where people have flexible work patterns, shared responsibilities in their families and different sources of income over the course of their life.

Labor's urge to axe the Government's catch-up contributions provision, which would benefit around 220,000 individuals with balances less than $500,000 are denied the flexibility to boost their super savings.

Labor's proposal to prevent the harmonisation of contribution rules will prevent older Australians from more readily contributing to their super.

And Labor's opposition to the Government's tax deduction measures would prevent 800,000 contractors, and non-unionised workers, getting the same deductions as everybody else.

Labor's proposal to double the tax paid on superannuation contributions for those earning between $200,000 and $250,000 will hit 290,000 people.

There was no justification or explanation for this superannuation raid other than an oblique reference to closing loopholes for high income earners.

Labor wants to keep super in the past by denying Australians the fairness and flexibility they need to become more independent in retirement.