Labor’s plans to tax retirees would have the most impact on those on a low and middle income and could force many people onto the Age Pension.
Federal Member for Groom John McVeigh said Labor’s retiree tax would negatively impact around one million Australians including pensioners.
“This is a disgraceful attack on people who have saved throughout their lives to be independent in retirement including more than 6 300 people who live in my electorate of Groom ” Dr McVeigh said.
“On average individuals adversely impacted by the policy stand to lose $2 300 a year and self-managed super funds will lose on average $12 000 a year. For many the losses will be much higher ” he said.
“Like all Australians the people of the Groom electorate deserve a Government that encourages personal responsibility rewards hard work and allows them to keep more of what they earn.
“Labor’s retiree tax undermines these values ripping over $57 billion out of retirement savings. This is part of Labor’s plan for more than $387 billion in additional taxes to people’s homes incomes business and savings.”
Dr McVeigh said suggestions from Labor that this policy would only hit the wealthy have proven to be completely untrue.
“Many retirees in the Groom electorate rely on tax refunds from share dividends to help pay basic household bills ” he said.
“Labor claims their retiree tax will only slug the wealthy but the truth is 84% of those affected are on a taxable income of less than $37 000.
“Labor has no respect for those who have worked hard paid taxes and planned for an independent retirement. Many senior Australians stand to have their income slashed under this disastrous policy ” he said.
Dr McVeigh said the Coalition Government would support retirees through a range of key measures including:
– guaranteeing no new taxes on superannuation;
– improving the flexibility of the superannuation system;
– protecting and expand access to self-managed super;
– widening choices in later years through expanded pension loans scheme;
– allowing contributions to super for the proceeds of downsizing; and
– continuing to give self-managed super funds the flexibility to borrow on a non-recourse basis to help maximise returns in retirement.
‘We believe the reward for a lifetime of hard work should always be a long healthy and dignified retirement ” he said.
For more information about the Coalition Government’s plan to support retirees visit: https://www.liberal.org.au/our-plan-support-retirees