Statement: MPs Will Pay Increased Superannuation Taxes
Media reports in recent days suggesting Federal politicians in defined benefit superannuation schemes will be immune from reduced superannuation tax concessions announced at the last budget are entirely false.
The Government has consistently and clearly said that Federal politicians earning in excess of $300,000 will be impacted by this reduced concession.
This was made clear when the measure was announced on 8 May 2012.
And this has been consistently stated by Minister Shorten as recently as 7 February this year, and by his office as recently as yesterday.
This means that the Prime Minister, the Deputy Prime Minister and Treasurer, other senior ministers, the Opposition leader and any other Federal politicians earning over $300,000 will pay higher taxes on their superannuation. This is regardless of whether they are in a defined benefit scheme or an accumulation scheme.
Claims that higher income earners would have 'a year off' from paying the increase are also incorrect.
As Minister Shorten's office made clear yesterday, the Government will bring legislation before the Parliament during the current financial year and the measure applies from 1 July 2012, including for Federal politicians who were elected before changes to the pension scheme were enacted in 2004.
The tax for the 2012-2013 financial year will be first collected in early 2014, to allow the ATO to accurately measure income and contributions.
Labor MPs, including those who will be affected by this change, support this measure because it is fair.
It remains to be seen whether those in the Opposition who will be effected by this measure will support the legislation.
12 February 2013