8 October 2006

Spring Racing for Beazley - A Bet Each Way on Your Super

With the Spring Racing Carnival descending on Australia, it appears Kim Beazley and Labor are already having a bet each way – unfortunately for Australian income earners, it’s on their retirement savings.

It took an astonishing 125 days for Mr Beazley to say anything on the most dynamic improvements to superannuation in Australia’s history - a vague statement of ‘in principle support’.

Mr Beazley even told the Parliament that this was the ‘end of story’ on the matter.  

However last week, Kim Beazley’s spokesperson on superannuation claimed it would be fiscally irresponsible for Labor to ‘sign up’ to the Government’s super plan.

This is typical ‘flip-flop Labor’ under Kim Beazley - a bet each way because they simply haven’t the strength of leadership or policy credibility to actually take a position.

The Government’s plan is clear cut and the cost across the forward estimates has been outlined. 

This $7.2 billion investment in Australians’ retirement savings will include:

  • abolishing end benefits tax on superannuation;
  • abolishing reasonable benefits limits;
  • extending the co-contribution scheme to the self employed; and
  • halving the age pension assets test taper rate to $1.50 per fortnight from 20 September 2007.

The bottom line is that small, medium and large businesses around Australia support the Government’s planned reform to superannuation. 

Yet they are astonished that Kim Beazley and Labor still seem to be dithering on backing the plan.

It just goes to show that Mr Beazley has no credibility when it comes to supporting Australian business and no policies to maintain Australia’s prosperity.