Labor has today been caught out propagating unsubstantiated rumours that some Australian Defence Force personnel may be forced to pay more tax under regulations being drafted by Treasury to accompany the new Simplified Super reforms commencing on 1 July 2007.
These rumours are absolutely not true.
If Labor’s spokesperson on this issue, Alan Griffin, had been serious about easing concerns amongst ADF personnel he would have contacted my office to learn the truth, rather than issuing statements designed to score cheap political points.
In February 2007 the Parliament passed the Government’s Simplified Superannuation reforms.
Labor has sought to scaremonger on speculation that the new Regulations to accompany some aspects of the reforms will mean that members of the Defence Force Retirement and Death Benefits (DFRDB) Scheme will have to pay significantly more tax on any commuted lump sum benefits that they may receive on retirement after 1 July 2007.
This unsubstantiated speculation is just not true.
These Regulations will not change existing benefit options currently available to DFRDB members or the tax treatment of any commuted lump sum benefit from 1 July 2007. From age 60, members will also benefit from lower tax rates on their lump sum benefits and a 10 per cent tax offset on their pensions from an untaxed source.”
The Government expects the final regulations will be registered and available to public shortly.
The only real uncertainty facing all Australians regarding superannuation is Labor’s failure to say whether or not it will follow the direction of their Union bosses and restore the 15% tax on super benefits.