Morrison accuses Labor of costing retirees $3.75 billion

19 April 2018
| By Hannah |
image
image
expand image

Treasurer Scott Morrison has claimed that Labor’s dividend imputation refund policy will cost Australian Prudential Regulation Authority (APRA) regulated superannuation funds $3.75 billion, as he again hit out at the Opposition’s “bungled and damaging retiree tax”.

According to the Australian Taxation Office (ATO), franking credit refunds in 2015-16 were worth over $300 million to APRA-regulated funds. Morrison said that when consideration is taken for the fact that these funds would not only lose income but also couldn’t make returns on it, the real dollar cost of the policy to such funds would have been $3.75 billion over the last decade.

Morrison said that, despite Labor’s “so-called” pensioner guarantee, pensioners whose APRA funds were affected would not be exempt from the policy.

“Labor's proposal is an old-fashioned Labor tax sledgehammer targeted at pensioners and retirees to grab as much tax as possible because they can't live within their means and control their spending. It's a tax on low and middle-income Australians and their future retirement nest eggs,” Morrison said.

He hit out at Shadow Treasurer, Chris Bowen, for standing by the policy despite its possible impact on retirees.

“Remarkably, Chris Bowen released a statement today confirming and bragging about the fact billions of dollars would be wiped from hundreds of thousands of super accounts, that pensioners won't be exempt and that Labor doesn't care,” Morrison said.

“Rather than patting himself on the back for ripping billions out of the retirement savings of pensioners and retirees, Chris Bowen should put his hand up, admit his proposal stinks and drop it.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

10 months 2 weeks ago
Kevin Gorman

Super director remuneration ...

10 months 3 weeks ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

10 months 3 weeks ago

The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones....

17 hours ago

APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers....

17 hours ago

The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members. ...

3 days 16 hours ago