The Federal Member for Throsby Stephen Jones, today welcomed the announcement from the Rudd Labor Government to put a five-year freeze on any major changes to superannuation tax policy, providing confidence for Australians in the stability of their superannuation system.
“This announcement is important for the 22,000 workers in the Illawarra and Southern Highlands who earn under $37,000,” said Jones.
“They deserve the certainty that their superannuation is safe and contributions will continue to increase.”
“The five-year freeze commences immediately and means that under a Labor Government, the rise to 12 per cent super, increased concessional caps and the tax cut for low income workers will not be ripped away by Tony Abbott.”
“This decision will be legislated by a re-elected Rudd Labor Government and give people the confidence to make investment decisions knowing the rules will not be subject to constant change,” Jones said.
This decision builds on the Labor Government’s superannuation reforms, including:
- Boosting the superannuation savings for working Australians by increasing the Super Guarantee rate from 9 to 12 per cent, from 1 July 2013 to 1 July 2019, boosting the retirement savings of 8.4 million workers;
- Abolishing the Super Guarantee maximum age, enabling workers aged 70 and over to receive the Super Guarantee for the first time.
“For a 30 year old on average full-time wages, the Federal Government's changes will add an additional $127,000 into their super by the time they retire at 67,” said Jones.