The failure of the Labor Party to support the Federal Government's superannuation surcharge legislation is a cynical stance by a party that has no comparable package of policies on offer, the Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, said today.
Senator Coonan was speaking following the rejection in the Senate of the Superannuation (Surcharge Rate Reduction) Amendment Bill 2003 which would have reduced the surcharge from 15 per cent to 10.5 per cent over three years.
"Hardest hit by the Labor Party's mindless opposition will be people putting as much money as possible into superannuation in the last years of their working lives to maximise their retirement savings," Senator Coonan said.
"This particularly hits people saving at the end of fragmented careers, especially women who have taken years out of the paid workforce to concentrate on raising families."
"Recent research has indicated that a person on about $60,000 a year who is salary sacrificing to invest in superannuation may be hit by this surcharge."
"It is an extra charge that is being paid over and above the usual taxation points that everyone pays," Senator Coonan said.
At the last Federal election, Australians voted for the most comprehensive superannuation policy ever offered called A Better Superannuation System which committed this Government to a system that was fair, safe and more accessible than ever before.
Senator Coonan said that after housing, superannuation is the most valuable asset owned by Australians and despite Labor's opposition, the Government remains committed to improving Australia's superannuation system.
"I recently announced a revitalised approach to superannuation to increase the momentum for superannuation reform with renewed efforts to implement the Government's election promises, some of which have been stalled in the Senate since 1997," she said.
Senator Coonan said Opposition promises to improve superannuation ring hollow when for several years Labor has blocked several measures to improve superannuation including giving workers choice over where to invest their own money.
The fact is that Labor has no alternative or coherent policy on retirement incomes.
The electorate expects more from Labor on superannuation than just saying "No!"