After sustained pressure from the Government, the Labor Party has finally decided to support the Howard Government’s dynamic plan to reform superannuation.
“We have seen months of dithering from the Labor Party but it appears they have finally come on board and supported the Government’s plan to simplify and streamline superannuation,” Mr Dutton said.
“This is a win for all Australians who have joined the Government in calling on Labor to provide certainty as they build their nest egg and plan for their retirement,” he said.
“The Government welcomes Labor’s support for the plan. Unfortunately Labor could not resist re-hashing Mark Latham’s costly and tired old ideas.”
The Howard Government’s plan includes:
- an end to tax on end benefits paid from a taxed fund for Australians aged 60 from 1 July 2007;
- abolishing reasonable benefit limits (RBLs), introducing new streamlined rules for contributions and giving individuals greater flexibility as to how and when they wish to draw on their superannuation in retirement;
- reducing the pension assets test taper rate from $3.00 to $1.50 per fortnight with effect from 20 September 2007; and
- allowing the self employed to roll over up to $1 million from the sale of a small business into their super over their lifetime.
“This is another demonstration as to how the Howard Government is better able to maintain Australia’s prosperity into the future, than the inexperienced and indecisive Labor Party.”
“The success in pressuring Labor to support this plan is a real victory for all Australians planning their retirement. It’s a shame Labor won’t act in the national interest and support other vital Government initiatives, such as the ‘job-creating’ Work Choices system.”