Would Labor's new superannuation policy hit you?

Labor has unveiled their new superannuation policy and seem to be using it to harvest government income of up to $14 billion dollars from the Australian people.

The two prominent key measures are:

  1. Impose a 15 per cent tax on any earnings above $75,000 that applies to people with more than $1,500,000 in their super accounts. The ALP believe this could recoup the government $9.2 billion billion over a decade.
  2. Reduce the threshold for taxing contributions so those who earn $250,000 or more would pay 30 per cent tax on their contributions. The ALP believes that this could recoup the government $5.1 billion over a decade.

The plan clearly takes aim at wealthy Australians and luckily, it won’t impact anyone on the pension or part pension. But is it right to penalise people who have and are working hard to save for retirement?

Opposition Leader Bill Shorten seemed to think that it is perfectly fair to penalise the wealthy for quite simply, being wealthy and he believes that this is how to make the super system sustainable.

Ad. Article continues below.

“These changes are all about putting fairness back into the system,” he said.

“These changes are good for the future integrity of Australia’s pensions and superannuation system.

“They are fair, and they’re good for the budget”.

This effectively penalises people for being good savers, having high-paid employment which often reflects the responsibility and nature of the job and being smart about their future. So is it right to do this?

Have your say today and tell us, do you think this is the right way to approach super? Or do you think that super should be taxed minimally across the board – regardless of income? Share your thoughts in the comments below…