The Crest of the Commonwealth of Australia Treasury Portfolio Ministers
Picture of David Bradbury

David Bradbury

Assistant Treasurer, Minister Assisting for Financial Services & Superannuation and Minister for Competition Policy & Consumer Affairs

5 March 2012 - 18 September 2013

Media Release of 08/04/2013

NO.042

Tony Abbott's $4 Billion Superannuation Tax Raid

Opposition Leader Tony Abbott should immediately reverse his stated policy of slugging Australians with a $4 billion superannuation tax hike.

Yesterday, Mr Abbott again confirmed he will hit the super savings of 3.6 million Australians - including 2.1 million women - earning up to $37,000 by scrapping the Low Income Superannuation Contribution if he's elected.

The Gillard Government put in place the Low Income Super Contribution from 1 July last year, providing a super tax cut of up to $500 per year to help low income earners save for their retirement.

Mr Abbott's policy will target 3.6 million workers on low incomes, compared with around 16,000 people impacted by the Government's reforms.

If Mr Abbott calls the Government's reforms "a $1 billion hit on people's retirement savings" as he did on Friday, what does he call his own policy that hits 225 times as many people and is four times the size?

Tony Abbott has spent the last two weeks fuelling rumours about the Government's superannuation reforms to try and keep his $4 billion raid on superannuation a secret.

He must front up to the Australian people and explain why he would slug 3.6 million low income workers with a $4 billion tax hike, but continue to defend the excessively generous tax breaks of 16,000 of Australia's most wealthy superannuants.

Under Tony Abbott's plan to reverse the Low Income Superannuation Contribution, super taxes will be jacked up by up to $500 a year for the following people:

  • NSW – 1,131,000 people
  • VIC – 910,000 people
  • QLD – 800,000 people
  • SA – 260,000 people
  • WA – 358,000 people
  • Tas – 90,000 people
  • NT – 30,000 people
  • ACT – 50,000 people

Tony Abbott has also repeatedly refused to guarantee the Liberals' support for the Government's proposed increase to the cap on concessional contributions for older Australians to $35,000.

This means he is refusing to support 160,000 Australians aged 60 and over who want to put up to an extra $10,000 a year into their super.

The Labor Party introduced and increased superannuation, and unlike the Coalition, the Labor Party will always protect and grow superannuation and keep the system fair.

8 April 2013