Opposition to "take an axe" to super savings

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In his 2013 Budget reply, Opposition leader Tony Abbott has announced a “no surprises, no excuses” approach.

Abbott said the Coalition would cut revenue from carbon emission penalties, but keep current income tax thresholds and current pension and benefit fortnightly rates the same. Despite saying that many of the measures in the budget were “objectionable”, Abbot said a Coalition administration would not oppose, and in government might even implement, some of them.

“Far from cutting to the bone, we reserve the right to implement all of Labor’s cuts, if needed, because it will take time to un-do all the damage this government has done.”

Labor’s increase to compulsory super from nine to 12% will be delayed by two years by an Abbott administration. Finance Minister Penny Wong said those changes would “take an axe” to the superannuation savings of 8.4 million Australians.

Minister for Financial Services and Superannuation Bill Shorten said the delay meant that a person aged 30 today, on average full-time earnings, will retire with $20,000 less in superannuation than if the increase went ahead.

Abbott will also cut the twice a year supplementary allowance to people on benefits and the low income superannuation contribution, because both were funded from the mining tax. The $7b Gonski school funding reforms will be scrapped and Abbott said there will be parliamentary days dedicated to repealing some of the past Government’s laws.

“These measures alone will produce nearly $5 billion a year in savings, which is more than enough for tax cuts without a carbon tax,” said Abbott.

Share your thoughts on the Budget and Budget reply, who do you think has the better proposols?

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Budget 2013: Super industry breathes sigh of relief

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  • Ben on 20/05/2013 9:48:37 AM

    Hmmmm I'm guessing Mr Shorten is not very well liked! lol :)

  • Keith L. on 17/05/2013 7:09:22 PM

    I am waiting for the inevitable Shorten claims during the election campaign of all the good things he has done for super including the lifting of the concessional contribution cap from $25,000 to $35,000. Sadly most Australians will be oblivious to the reduction imposed by the Labor party creating a massive taxation penalty for the unwary. Conceding the observation made by John that some of the economic decisions made by the Government were sound in the circumstances, the poorly drafted, knee-jerk reactions and blatent disregard for the consequences of much of the legislation enacted has been immature and inept. Irrespective of who wins in September, the next term of Government will be tough but I believe the alternative team to be more attuned to the business world than the bunch of union officials currently pretending to understand commerce.

  • Arthur on 17/05/2013 5:08:21 PM

    Bill Shorten, hopefully after the next election you will have also "Shorten" your political career, while you make a big huff and puff about how in 35 years time a 30 year old will be $20,000 worse off, that it equates to less than $1000 of buying power if you would like to relate it to real dollars today. I get sick and Tired of the current Govt always quoting when they want to take money off the taxpayer the cost on a daily basis and when they are handing out money quoting it on a yearly basis.

    The new Medicare Levy will cost the average Australia $0-96 cents per day, but it will never cost us $350-04 per year. Oh yes our power bill will go up by approx $3-00 per week ( due to the Carbon Tax), but we Labour will compensate all Pensioners with a payment of approx $250, ( paid out via their fortnightly pension)
    Thank God this nightmare will end on September 14th.
    Perhaps the liberals can declare this day each year a public holiday.

  • Mark Thompson on 17/05/2013 2:00:47 PM

    All well and good, but will the coalition restore some meaningful level of concessional contribution for the over 60s.

  • jason on 17/05/2013 1:00:02 PM

    Let me tell ya, if the labor government didnt get the huge donations from the Industry Super Funds of Australia, Shorten would be back screaming at the top of his voice and Construction sites and Mines making a typical pig of himslef that he is. If that moron thinks business Small or Large should pay for every Brainiac idea that comes from his mouth and business to survive.... Asia here comes some of Australia's best entrepuers because we have just had enough. Go back in your Hole Shorten or try and run a small business with your Gonski/NDIS/FOFA and other 400 and something pieces of rubbish, take those independts with you

  • Tim - Perth on 17/05/2013 12:42:07 PM

    Who do either political party think they're fooling by claiming credit for increases or otherwise in SG contributions when it's the employers that pay, not them! And for Shorten to claim workers will be $20,000 worse off by the end of their working lives; this sounds like a grab out of the industry funds advertising/adviser bashing self promotion campaign. Show me one 'worker' who has been better off by taking the advice of an industry fund over a qualified and experienced adviser.

  • Innocent Observer on 17/05/2013 11:46:40 AM

    So Tony's deferring SG increases for 2 years. Good stuff, that's more in the pocket of the average punter to pay the mortgage, send the kids to school, etc etc etc... Minister Wong is doing here job as a politician - trying to frame this as an assault on the average Aussie battler (which if you consider the way out tax & super system works, it's actually the complete opposite)

  • John on 17/05/2013 11:23:22 AM

    ah yes, you mean the significant economic damage done since '07? getting a bit sick of the labor bashing on economic grounds. its completely unfounded. the economy is doing exceeding well in a global context and, at a high level, the economic policy initiatives have been good - perhaps a little wasteful and ill directed but the intention is spot on. what would the libs have done? exactly the same; but in slightly different areas. dont get me wrong; politically this government is rubbish, but not based on the economics.

  • David Freer on 17/05/2013 10:12:01 AM

    It is a bit rich of Wong to accuse the coalition of taking an axe to Australians' superannuation savings given the amount they have slashed concessional contibution limits!

  • Gareth Hall on 17/05/2013 9:44:54 AM

    The answer is self evident. Australia could not survive another term of Labor without significant economic damage.

  • Peter Alderson on 17/05/2013 9:37:58 AM

    With Gillard and Shorten gone, despite the SG rate not increasing under Abbott the economy will be stronger people will have employers to actually pay their SG and better economy equals better returns, I say the average worker will actually be $20,000 better off!

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