Bill's Media Releases

LOW INCOME SUPER BOOST UNDER THREAT

The Member for Maribyrnong and Minister for Superannuation, Bill Shorten, today expressed concern about the impact of the Coalition’s superannuation policy on over 20,000 workers in his electorate.

Around 20,800 part time workers and lower income earners in the Maribyrnong electorate will be forced to pay tax on their superannuation contributions if the Coalition, as promised, scraps the Low Income Superannuation Contribution.

“The Gillard Government has made changes to ensure workers earning less than $37,000 are no longer paying up to $500 a year in tax on their superannuation contributions,” Mr Shorten said.

“The majority of low income and part-time workers in Maribyrnong who are set to benefit from these positive changes are women.”

“The Coalition has confirmed that they will reimpose the contribution tax on low income workers,” said Mr Shorten.

“As both the minister and local MP I know how important retirement income will be for those living in Melbourne’s west who are starting out in the workforce, battling in lower paid fulltime work,  or those parents who are combining part-time work and family commitments.

“Lower income earners face enough of a disadvantage, and this measure is carefully designed to provide a boost for their long term savings while they manage their busy lives.

“Mums working part time, contract cleaners, shop assistants, child care workers, hairdressers, aged care and disability workers, hospitality and bar staff, gardeners and many others on low-incomes and part-time incomes will pay more tax under an Abbott government,” Mr Shorten said.

The Low Income Superannuation Contribution assists around 3.6 million low income Australians, who currently pay up to $500 a year in tax on their superannuation.

In particular, the superannuation savings of over 2.1 million Australian women will be boosted by over $500 million in 2013-14 alone.

A 30 year old permanent part‑time worker earning a quarter of the average weekly earnings, and who receives the contribution for 20 years of their working life, is projected to receive eight per cent more in real retirement benefits or around $13,000 extra in their superannuation account.

The Low Income Superannuation Contribution will assist around 20,800 low income workers in Maribyrnong who currently receive minimal (or in some cases, no) tax benefit from contributing to superannuation, due to the 15 per cent superannuation contribution tax being at or above their income tax rate.

“The Gillard Government is making the superannuation system fairer by assisting workers on low incomes achieve financial security and build their wealth for their retirement,” Mr Shorten said.

ENDS

Contact: Jayne Edwards 9326 1300 / 0410 455 737