Would Labor’s new superannuation policy hit you? 361



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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.

“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… 

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  1. When you are due for a Heart operation and you find out all the Heart surgeon’s have gone to work in another country to get a better deal will super man Bill stick his hand up and say this is my fault just like other ALP leaders did not do in past years with lives lost .

    8 REPLY
  2. These people have already paid the highest tax rate in their working life leave pensioners alone regardless whether they are self funded or not

  3. It was no big deal when aged pension increases were reduced and the people on the lowest incomes were affected. Now we are looking at the high end of town and reducing their income in retirement, it’s clearly going to be a big deal now isn’t it.

    6 REPLY
    • That has not been dropped at all Decima. I’m not on a pension so I’m not exactly sure of how they are increased. I think though they used to be increased in line with the average age and now it’s in line with the CPI. But either way nobody really cares that my 78 year old neighbour with only a 20 year old car and a modest home for assets received something like a $2 a fortnight increase. Along with all the other aged pensioners I presume. That’s plain insulting. So if the pensioners are expected to some of the heavy lifting, let the big end of town do some too. We’ve developed a user pays mentality in this country. So let the big earners be the big taxpayers.

    • The only people affected will be those with $1.5 million in their super fund. And the super fund has to earn more than $75,000 per year before it’s taxed. Do you know anybody like that? I don’t.

  4. What percent of the population will this effect. How many average workers accumulate this amount of Super. Look how much CEOs earn compared to the workers. Is that fair?

    2 REPLY
    • Jo-Anne..Australia Post pays its CEO $4 mill per year That is why we are having our services reduced and our price of stamps raised. No CEO is worth millions. The CEO of Aurizon used to be called “The six million dollar man” until he recently got a pay rise of 30%. The workers didn’t get anything. You and I are paying for the CEO of Aurizon with freight charges on every item we buy. When these institutions were owned by the people, the head honcho didn’t get 1 mill let alone multi-millions. The CEO’s are not a problem. The obscene salary amounts are. If a company can afford to pay it’s CEO’s multi-millions can afford to pay more tax.

  5. Has anyone read the story of the Little Red Hen? Socialism at its worst. Self funding retirees save the government millions, but now have to share their savings so that a Labor government has more money to waste.

    1 REPLY
    • The only people affected will be those with $1.5 million in their super fund. And the super fund has to earn more than $75,000 per year. Do you know anybody like that? I don’t.

  6. Yes $1,500,000 in super is more than enough for anyone to live comfortably in retirement.
    Superannuation is used by the wealthy to amass a fortune tax free and must be stoped.
    If we were to remove the tax free status of religious bodies this would fix the countries revenue problems over night.

    1 REPLY
    • Need to look at increasing GST then you pay tax on what you spend not what you have worked hard to earn. Need to give people incentive work hard save and invest. We forget that even self funded pay tax on most things . Would need to increase pensions etc to cover any increase seems fair to me.

  7. We had absolutely nothing to start our marriage 48 years ago but with very hard work and sometimes both of us working two jobs so we could look after our 3 children feed and educate them and make sure they had a good life. Then when they left home we started to think of our future because the government wanted us to look after ourselves. We never took anything off the government and didn’t want to start now as it seems more important to look after the people who don’t want to work and take handouts all their life. Now Bill wants to take off us what we have already been taxed on and then maybe I will have to get a supplement pension from them to live on and be a burden to Australia in my retirement when I have never never done it in my life. It’s easy for you to talk about taking money off us as you will always be looked after I have looked after myself and now you even want to take that off me. I am disappointed in you its because of the Labour Party we are in this predicament just leave us who have looked after themselves alone so I can get on with getting on instead of worrying what is going to happen to my future

    25 REPLY
    • I know older people have worked, saved, and paid tax…..but they also had opportunities denied today to younger people, houses were affordable, education was free…and jobs were plenty…today, I don’t think it is fair to put the tax burden mainly on younger people who themselves have to pay for their uni degree, can’t afford a house, have to bring up their own families in an ever expensive country….to top it up they will be the ones dealing with the effect of climate change…. I think it is fair that people who can contribute do…..

    • Maryvonne Norman in retrospect, the cost of living and the cost of housing in comparison to today’s wages is comparable! It all comes down to making sacrifices and hard work.

    • This is not stealing from the rich it’s simply fixing the outrageous cash grab Howard gifted to the upper 5% of the population. Check the facts. We all work hard, who determines what constitutes hard work anyway? We’ve raised five kids and paid taxes all our lives, you don’t hear us bleating about the tiny numbers of people who go through hoops to get meagre assistance in hard times.

    • Well thank you Christine Donaldson – despite working for most of my adult life and still working at 72 you consign me to “the people who don’t want to work and take handouts all their life” because I don’t have huge super or savings. I too never took anything from the Government until I went onto a part pension, but super didn’t come in until I’d been working more than thirty years. Add to that I’ve never earned a high enough salary to be able to put extra into super. If that makes me a bludger from your lofty position so be it. What do you suggest – that pensions should be done away with completely rather than means test it?

    • I so agree with you Christine. My husband and I have worked hard all our working lives, both single and married, to put aside enough to retire on. Through our married life and now as self funded retirees we have never ever had one single payment from the Government. We raised children with no help either and now when we feel we should be without worry we have to deal with banks giving us less than 3% interest on our money as we thought to be safe by investing there and now Shorten et al want to hit us again on money we have already paid tax on. I am so tired of everyone saying people who have saved need to pay more and have to bail out the people who didn’t think ahead. If people can afford beer, cigarettes etc then they are not the poor downtrodden they would have us believe. Oh and by the way I was a typist not anything flash but I made sure I put a little away when I could. Still, should Labor get in next election any money saved by this Government will be blown and will put us further into debt as they always do with their big spending ways.

    • I agree with you Rosemary to a point…I also studied hard to get the job I wanted to do all my life while I worked bloody hard and raised my family with no assistance from the Government either. BUT when I finally saved to accrue a little super there’s NO WAY I should be taxed again on that. I owe the Government nothing! Just the cost of our health fund for the past 48 years has been the cost of a small home and house and car insurance has bled us dry. Again no cost to the Government!

    • No one is turning back the clock so don’t jump to conclusions that are wrong..as for being taxed twice what Hogg wash read what is being proposed

    • Really annoyed at all the misunderstanding. Noone is taking off you what u have already been taxed on. You will just be paying tax on previously untaxed earnings ( like interest on bank accounts ) and even then only when you reach a pretty high threshold.

    • Ugh!!!! FFS. Noone is being taxed twice. I would say read the proposal, but must assume you have and just don’t understand. Get someone to explain it to you.

      1 REPLY
      • I think there needs to be a strong incentive for people to save for their retirement by making contributions to their super. It is suggested that those who earn more than $250,000 pay 30% tax on contributions…for dollars earnt and not contributed to super they pay 45% tax..so they save 15%. Seems a reasonable incentive.

        And why should self funded retirees not pay tax on earnings over $75,000 (I’m assuming they mean $75k/per annum). Those who invest outside of super pay tax on their earnings.

        The Government has to raise revenue to pay for services otherwise we end up like Greece. I am retired and I have a self managed super fund and I’m happy to contribute through a fair system of taxation.

        Wouldn’t like to see any changes that would result in an exodus from our shores of CEO’s and people with specialised talents due to uncompetitive taxation and salaries. We don’t want a brain-drain.

        1 REPLY
        • Oops…sorry Chris..didnt mean this post to be as a reply to your comment. I thought it was going in the general thread. Still on ‘L’ plates here.

    • EVERYBODY draws on the government for services one way or another. Maybe you didn’t claim the dole or disabled pension or whatever but you were STILL “claiming” government benefits one way or another … whether by defence, infrastructure, Medicare, etc. … and you CONTINUE to claim the same benefits in old age.
      Retired or not, you continue to play a part in society and any “excessive” income continuing to accrue from superannuation or by any other means needs to be assessed for tax along the same principles as we are taxed in other phases of our lives.

    • There will always be people who rort the system. Get over it. Life isn’t fair. But the government has a duty and a right to weed out those guilty of the biggest rorts, usually the super wealthy. It’s time they also paid their share to help those less fortunate.

    • I worked and paid for my childrens degrees so they wouldnt have that debt. I had to sign that I wouldnt have children for 5 years before the bank would give us a home loan. Thst would not hapoen now. The house we bought was basic not a mansion. I salary sacrificed yo top up super before retiring. I
      Paid for my Masters Degree to asdist my basic teaching qualifications. I grew up working class area of Blacktown . What crap politicians spew out. When they pay big tax on their cushy super. I will be impressed.

    • It is NOT because of Labor. It was a worldwide crisis the 2008 collapse of the sharemarkets. If Costello hadn’t ruined the mining boom by giving unrealistic tax refunds and had invested in out infrastructure we would be far better off. By the way, the coalition supported all of Labor’s proposals about Gonski and for assisting those with disabilities.

    • Christine Donaldson, if your super is worth $1 1/2 million then shame on you for not being prepared to pay tax on it!

    • The Liberal Party, Costello and Howard, started the rot. History proves that.

      Anyway, if you have a million dollars, why should a pensioner pay tax for YOU?

    • I believe all of us would not want to alter your respective futures for the worse, although Australia can no longer afford the wealthy dodging tax by placing up to 80% of their earnings into Super.

    • Maryvonne, Christine….. This is aimed at the big end of town who put money into super to avoid paying tax. It will tax earnings over $75,000 , you would have to have over $1.5 million in savings. You would pay tax on amounts over $75,000.

  8. Bill Shorten is an idiot. God help us if he ever becomes Prime Minister. He couldn’t run a successful chook raffle.

    17 REPLY
    • John Plumridge, I think your comment is stupid and unhelpful in this debate. Does this mean I should call you you an idiot and say you couldn’t run a successful chook raffle?

    • Shorten had always been an idiot , all his years in politics , why do you think he has never got far ? And yes he will take from us , just as Gillard went in and took money from bank accounts that were not touched . Don’t save money in your bank because they will get it . And by the time they pay back unions for getting them in power , you won’t get a thing , except perhaps getting shafted

    • Wasn’t it Shorten when Julia was PM who was asked if he agreed with her comments on a particular topic and said ‘I haven’t heard what she said but I agree with it’?

    • Bill Shorten you had better have a re think if you think you will be supported on this . Stop all the generous hand outs that all the ex politicans and their parteners get after retirement stop taking of those who have worked two or three jobs at times and saved hard so they are not a burdon on the tax payers like you politicans both sides of politics sit down and work out policy and make Foreign own companies pay what they sbould be paying stop the profits going of shore they make here it should stay here .you are starting to sound like a liberal now .Self funded retires are not rich just planned well and worked bloody hard to do it leave them alone .

    • Anne Webber. I’m just stating fact. I’m not putting my hand up to be the alternative PM so whether I could run a successful chook raffle or not is immaterial. Yours is a stupid comment.

    • You obviously will be affected by his policy, well boo hoo for you, you selfish prick. Most of us work hard all our lives but can’t amass millions for retirement. Most of the rich get there by routing the system and its time you all pay.There is enough for all to be comfortable if those with too much paid their share.

    • To Dennis N Rhonda Clark just for your information I am Not affected by this policy And I resent your comment that I am a selfish prick and will be reporting you for these types of comments. Just be careful what you put on Facebook.

    • John. You started this name calling. Don’t be surprised when you get it thrown back.
      Most people are alarmed by this proposition. They can’t realize that the only people affected will be those with $1.5 million in their super fund. And the super fund has to earn more than $75,000 per year. Do you know anybody like that? I don’t.

    • Exactly, Leone. Our super pays us about $45,000 pa. We own our own home so we pay for water and land rates. We also have a small business which clears about $25,000 pa. On a total of $70,000 we are managing very well, so an income of $75,000 from a superfund is easy street. Therefore, paying tax on anything above that is no biggie. Millions of Australian workers earn far less than $40,000 and still pay tax on that and are never likely to get enough super to be taxed on.

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