Scrapping super for those who need it most?
Work part-time? Earn less than $37k? Know anyone who does? Today, the Federal Government announced plans to take from the retirement savings of those who need them most, while giving tax cuts to big mining – by scrapping the low-income super concession.
Up until now, the Government would contribute $500 a year to those earning $37,000 or less, as a way of helping low-income earners save for retirement - a measure that makes superannuation far more equitable. The Coalition plans to repeal that. This move will see 3.5 million Australians worse off in retirement, and disproportionately hurt women, young people and rural Australians.
We're not making this up. But the Abbott government has been good at keeping it quiet and right now, few people even know it's happening. If we work together to get the truth out there, there's a real chance we can stop these changes and protect the retirement savings of millions of Australians. Can you spread the word and share this infographic?
Up until now, the Government would contribute $500 a year to those earning $37,000 or less, as a way of helping low-income earners save for retirement - a measure that makes superannuation far more equitable. The Coalition plans to repeal that. This move will see 3.5 million Australians worse off in retirement, and disproportionately hurt women, young people and rural Australians.
We're not making this up. But the Abbott government has been good at keeping it quiet and right now, few people even know it's happening. If we work together to get the truth out there, there's a real chance we can stop these changes and protect the retirement savings of millions of Australians. Can you spread the word and share this infographic?
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The Coalition plans to scrap the $500 Low Income Super Contribution for people earning less than $37,000 a year as part of its bill to repeal the mining tax.
Experts say the move will rob as much as $27,000 from the retirement savings of anyone earning less than $37,001 a year. A staggering 50 percent of working women in Australia will be affected - and 80% of women who work part-time - and 40 percent of regional Australians.[1] And, it's all being slipped into the "Mineral Rent Resources Repeal Bill", so at the same time as slashing super for lower-income earners, Big Mining walks away with more profits.
Pair that with the Coalition's plan to delay the planned employer increase to superannuation from 9% to 11% by another two years, and all up, these policy changes mean Australians are expected to have $53 billion less to retire on by 2022 – something our nation simply can't afford.[2]
Experts say the move will rob as much as $27,000 from the retirement savings of anyone earning less than $37,001 a year. A staggering 50 percent of working women in Australia will be affected - and 80% of women who work part-time - and 40 percent of regional Australians.[1] And, it's all being slipped into the "Mineral Rent Resources Repeal Bill", so at the same time as slashing super for lower-income earners, Big Mining walks away with more profits.
Pair that with the Coalition's plan to delay the planned employer increase to superannuation from 9% to 11% by another two years, and all up, these policy changes mean Australians are expected to have $53 billion less to retire on by 2022 – something our nation simply can't afford.[2]
The changes are so problematic that even the powerful superannuation industry is fighting back. No less than four super fund groups have already spoken out. David Whiteley, CEO of Industry Super Australia, says the changes are unfair and unsustainable, leaving 1 in 3 Australian workers without a tax concession on their superannuation – the very people who need this concession most.[3]
These moves are expected to affect 50% of all women - and a staggering 80% of women who work part-time.
During the election, the Coalition made a big deal about how its paid parental leave scheme would pay workers super while on parental leave – a good step towards redressing retirement inequity that typically leaves women retiring with far less. But Industry Super says the policy changes announced today will completely wipe out these benefits, with some new mothers losing almost twice as much as they would gain.[3]
During the election, the Coalition made a big deal about how its paid parental leave scheme would pay workers super while on parental leave – a good step towards redressing retirement inequity that typically leaves women retiring with far less. But Industry Super says the policy changes announced today will completely wipe out these benefits, with some new mothers losing almost twice as much as they would gain.[3]
"Industry bodies have called on the Government to reconsider its repeal of the low income superannuation contribution (LISC) in their submissions on the Minerals Resource Rent Tax (MRRT) Repeal and Other Measures Bill 2013." - Financial Standard, available here.
Coalition push to dump low-income super policy to hurt workers in Nationals' seats - SMH available here.
"This will disproportionately affect women, who constitute an estimated two-thirds of those eligible for the LISC and who generally already retire with less." - NineMSN, available here.
Coalition push to dump low-income super policy to hurt workers in Nationals' seats - SMH available here.
"This will disproportionately affect women, who constitute an estimated two-thirds of those eligible for the LISC and who generally already retire with less." - NineMSN, available here.