Labor’s plan to strip super concessions
Labor leader Bill Shorten talking with shoppers in WA last week.
Federal Labor wants to strip $14 billion in superannuation tax concessions from the wealthy under a new plan to hike tax rates on contributions.
The opposition will on Wednesday announce the plan which would remove tax-free superannuation earnings over $75,000, after which retirees would pay 15 per cent tax.
It would also lower the threshold for 30 per cent taxation from $300,000 to $250,000, with the combined measures raising $14 billion over the next decade.
Opposition Leader Bill Shorten said the measures would be good for the future integrity of Australia’s pensions and superannuation system.
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“These changes are all about putting fairness back into the system,” he told the ABC.
“They are fair, and they’re good for the budget.”
Labor’s super plan
- Reinstate a 15 per cent tax for earnings in the retirement phase over $75,000 a year that will affect about 60,000 people and raise $8.6 billion over the next decade.
- Remove the 10 per cent tax concession for defined benefits over $75,000 a year that will affect about 9500 people and raise $0.6 billion over the next decade.
- Lower the threshold for the 30 per cent high income superannuation charge from $300,000 to $250,000, raising $5.1 billion over 10 years.
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