Wouldn’t you know it – more “fiddling” with our Super system, now that the election is announced – how does that make you feel? Have you caught what each side is saying? Now, Super is one of the first areas the two sides have started debating with. The current Gillard government says it will lift taxes on Super of high-income earners, while they report that the opposition intends to abolish the low-income earner rebate on Super tax which is up to $500).
Writes Mike Taylor of Money Management:
“Superannuation has emerged as one of the earliest battlegrounds in the 2013 Federal Election campaign with the Government attacking the Opposition on suggestions it will abolish the low income super rebate, while the Coalition is attacking the Government over its signal it will lift super taxes on high income earners. The Minister for Financial Services, Bill Shorten, kicked off the tit-for-tat debate referencing an interview in which he said the Federal Opposition leader, Tony Abbott, had confirmed the Coalition would scrap the low income super rebate. Shorten said this represented a confirmation that under an Abbott Government, 3.6 million low-paid Australians would see their taxes rise.” READ MORE
And Wealth Professional reports:
“The coalition yesterday confirmed that they would re-impost a 15% tax on Australian workers earning less than $37,000, which includes 2.1 million women. Tony Abbott confirmed during his appearance at the National Press Club that the Coalition would not be keeping the Low Income Superannuation Contribution (LISC). The purpose of the LISC is to effectively refund the tax paid by low income earners on their concessional superannuation contributions, including the Superannuation Guarantee, up to $500 per annum. The LISC has been in place since 1 July 2012 at a cost of approximately $1bn per annum.” READ MORE
So while the Gillard Government plans to tax Super when a member starts to draw a pension, and the opposition leader is saying they will re-introduce Contributions Tax (remove the rebate) for people earning less than $37,000.
What are your thoughts? Start or continue the conversation here!