Shadow Treasurer Joe Hockey has today indicated the Coalition are prepared to scrap Labor's increase of universal superannuation from 9 to 12 per cent should they be elected.
This is a body blow to millions of hard working Australians saving for their retirement.
Today Mr Hockey said:
"The examples of the things the MRRT was meant to fund include: Small business instant asset write off and simplified pooling. Government superannuation contribution tax rebate for low income earners, that's going to cost $956 million this year. The Prime Minister has been talking about it in the parliament. The Mining tax will not to raise $956 million this year, to pay for all the things the Prime Minister has been talking about in parliament this week. The superannuation contribution caps, increasing the superannuation guarantee from 9% to 12%, phasing down interest withholding tax on financial institutions, expanding the definition of exploration to include geothermal energy, supplementary income support for low income earners. The Prime Minister said she had to redistribute the benefits of the mining boom to those most vulnerable. That is now all borrowed money. It says the Government is committing expenditure and we cannot pay for it any more. Tax loss carry back, accelerated depreciation for motor vehicles and the list goes on."
[THEN LATER IN THE PRESS CONFERENCE]
Q: Ok you've made that point quite clear, but you haven't answered my question. Will you scrap the tax when you get in?
HOCKEY: Yes, the tax is going to go under the Coalition.
Q. (inaudible)
HOCKEY: And the expenditure next to it will go. Of course we are not going to consign Australia to living beyond its means. Look at Europe.
Q. What would you cut?
HOCKEY: I just outlined it. I can go through it again if you want. You can't afford them. We have been saying time and time again. You cannot afford to hand out school kids bonus by borrowing money. Its unsustainable. And this Government has now proven that all of its advertising on the school kids bonus. All of its promises on infrastructure, All of its promises on superannuation are being funded on borrowed money.
The Coalition last week admitted they would reimpose a 15 per cent superannuation tax slug on 3.6 million workers earning up to $37,000.
Now the Coalition have gone even further to say they are prepared to axe Labor's historic increase in universal superannuation as well.
Never forget that in 1995 Tony Abbott said this:
Compulsory superannuation is possibly the greatest confidence trick of the last decade.*
You cannot trust the conservatives with superannuation because they have never believed in it, never supported it.
*Eureka Street volume 5, No. 3, April 1995