Minister for Financial Services, Superannuation and Corporate Law
9 June 2009 - 14 September 2010
Abbott a Risk to Australia's Retirement Incomes
Tony Abbott failed to come clean with the Australian people about his designs for their retirement incomes in last night's Budget-in-Reply speech.
What we already know though is that Tony Abbott is opposed to the Government's Stronger and Fairer superannuation reforms that will see 8.4 million Australians receive an increase in their retirement incomes*.
Tony Abbott failed to explain why he wants to deny:
- An additional $108,000 in the retirement income of a 30-year-old on average weekly earnings.
- An additional $78,000 in superannuation for a women aged 30 today on average weekly earnings, who has had an interrupted work pattern.
- Australians who are over 50 and have low super balances, the opportunity to contribute up to $50,000 a year into superannuation at a concessional tax rate .
Not content with opposing the Resource Super Profits Tax and the reforms to superannuation that it funds, Tony Abbott wants to tax superannuation contributions at a person's marginal tax rate**.
This would result in a major fall in the superannuation lump sum of retirees, as well as less take-home pay for working Australians.
Tony Abbott's plan to remove the tax concessionality of superannuation would see:
- a 30-year-old on average weekly earnings who under the current arrangements would retire with a lump sum of $456,000 would, retire with $245,000 – that is a cut of $211,000.
- $1,900 a year less for somebody on average weekly earnings then under the current arrangements - $36 a week less.
Tony Abbott is a risk to Australia's retirement incomes and would signal the end of Australia's world‑class retirement system.
There is clear choice when it comes to who people can trust when it comes to growing their retirement incomes – a Rudd Labor Government who will increase the tax incentives to save for retirement, compared to Tony Abbott's opposition who want to take a wrecking ball to the nation's superannuation system and dud working Australians of a decent and dignified retirement income.
14 May 2010
* BATTLELINES (TONY ABBOTT)
"At some point, saving money by keeping people off the pension while forgoing revenue to encourage them to make alternative provision becomes counter-productive."
"It could be simpler and fairer for the revenue forgone in superannuation concessions to be provided as a pension instead." (p. 108)
** INTERVIEW WITH STEVE PRICE, MTR, 4TH MAY 2010
So, as with many of these changes, they are dependent, they are pushed out in time. The timelines are very long, so what you're saying quite clearly is if you were to win the election then employers would not be forced to increase the superannuation contribution from 9 to 12?
I don't support this change. That's what I'm saying, Steve.
So it'll stay at 9 under you?
Well, yes, that's right. I am not proposing this. It isn't our policy. I am deeply sceptical about what the Government has in mind.
So let me get that clear – you would leave the contribution rate at 9?
I have no plans to change it.