11 November 2004

Labor's Super Policies Hit Women in the Retirement Hip Pocket

Opposition Treasury spokesman Wayne Swan has been challenged to reject Labor's failed superannuation policies which would hit women in the retirement hip pocket.

Assistant Treasurer, Mal Brough, made the call today following research released at the Association of Superannuation Funds of Australia (ASFA) conference that showed women often have lower retirement incomes than men due to career and family choices.

"This highlights the failures of Labor's regressive policies which would limit a woman's ability to build wealth both in and out of the workforce," Mr Brough said.

Labor remains strongly opposed to a raft of Howard Government measures which help address disparities in retirement savings between men and women:

  • Labor wants to abolish the Howard Government's co-contribution scheme which will help low income earners and women to boost their retirement funds. Under the scheme employees earning up to $58,000 are benefiting from an extended superannuation co-contribution that matches $1.50 for every dollar contributed, with a maximum co-contribution of $1,500 per annum available to those earning up to $28,000.
  • Labor would reimpose the work test which disadvantages those women who may be able to contribute to their superannuation between jobs, or when taking breaks from the workforce. The Howard Government removed the work test on 1 July this year.
  • Labor wants to raise the superannuation surcharge. The Howard Government will reduce the superannuation surcharge to a maximum rate of 10 per cent in 2005-06 and following years, and remains committed to reducing it further.
  • Labor opposes the Howard Government's proposal to allow spouses to split superannuation contributions.

"Labor must face up to the fact that its failed policies – designed by superannuation spokesman Nick Sherry – would punish and disadvantage women."

"If Labor is serious about gaining economic credibility the new Shadow Treasurer, Wayne Swan, has to admit Labor's mistakes, and follow the Howard Government's lead."