Tony Abbott Must Confirm His Intention to Slug Low Income Earners with a Tax Hike
In an embarrassing development today, Tony Abbott will have to slap down his senior colleague and confirm his intention to reintroduce a 15 per cent superannuation tax on 3.6 million low income earners.
Thanks to Labor the Low Income Superannuation Contribution has been in place since 1 July last year - abolishing the 15 per cent super tax paid by workers earning up to $37,000.
Last Thursday at the Press Club Tony Abbott said it would go.*
Last night on the ABC's Q&A program Christopher Pyne denied that any such announcement had been made.
JONES: Do you have a policy that will slug low income superannuants?
PYNE: Well what David [Bradbury] is referring to there is the abolition of the carbon tax and the mining tax…
BRADBURY: No the policy that Tony Abbott confirmed at the National Press Club, the low income superannuation contribution.
PYNE: That is one of the aspects of the carbon tax and the mining tax. Now we haven't announced what David Bradbury said that we've announced.
Tony Abbott must come out of his policy lightweight corner and clear this up.
Categorically, once and for all, the Coalition needs to bite the bullet. The Low Income Superannuation Contribution is a $1 billion a year measure, worth up to $500 a year to each Australian worker.
Mr Abbott can run, but he can't hide from 3.6 million Australians, of whom 2.1 million are working women.
5 February 2013
To verify the following please contact the Office of the Leader of the Opposition: "A spokesperson for Mr Abbott confirmed the existing policy stands to reintroduce the tax."
*Leader of the Opposition at NPC on 31 January
JOURNALIST: The Coalition's promised to scrap all expenditures relating to the mining tax, I believe. And also in your document at the weekend you said there wouldn't be substantial changes to superannuation. But there's something called the low income super contribution, which I think is funded from mining tax?
JOURNALIST: And scrapping it I think would make superannuation more expensive for people earning under $37,000 a year. So I'm just wondering if you can – does it stay or does it go? Can you just reconcile that?
ABBOTT: Well I said there'd be no unexpected detrimental changes and the change you allude to is one we've put on the record many months ago and yes, that stands.
Note: Treasury analysis
3.6 million workers earning under $37,000 includes:
- Around 1.1 million workers in NSW
- Around 910,000 workers in Victoria
- Around 800,000 workers in Queensland
- Around 260,000 workers in South Australia
- Around 360,000 workers in WA
- Around 90,000 workers in Tasmania
- Around 30,000 workers in the NT
- Around 50,000 workers in the ACT
3.6 million people equates to 3 in every 10 workers.
5 February 2013