Minister for Revenue and Financial Services Kelly O’Dwyer says the ALP’s failure to back Coalition policies – which include a catch-up to concessional super contributions, harmonisation of contribution rules and an extension deductions for personal tax contributions – displays “a lack of understanding of the real changes in working patterns that have been occurring in our economy and our communities”.
“Labor’s policy is bad for women, it’s bad for carers, it’s bad for contractors, bad for small businesses and the people who work for them, bad for parents juggling the work-life balance who want to provide for their retirement and bad for older Australians,” Ms O’Dwyer said in a joint statement with Treasurer Scott Morrison.
Ms O’Dwyer said while the Coalition has been intent on developing a fairer and more flexible superannuation system, Labor’s super outlook is not representative of a modern economy.
“Their changes are more suited to the economy of the 1970s than a 21st century economy where people have flexible work patterns, shared responsibilities in their families and different sources of income over the course of their life.”
“Labor’s urge to axe the government’s catch-up contributions provision, which would benefit around 220,000 individuals with balances less than $500,000 are denied the flexibility to boost their super savings.”
Ms O’Dwyer also heavily criticised Labor’s opposition to the government’s tax deduction measures, which would reportedly prevent 800,000 contractors and non-unionised workers from “getting the same deductions as everyone else”.
“There was no justification or explanation for this superannuation raid other than an oblique reference to closing loopholes for high-income earners,” she said in her statement with Mr Morrison.
“Labor wants to keep super in the past by denying Australians the fairness and flexibility they need to become more independent in retirement.”