Local MP’s Sharon Bird and Stephen Jones say that the Abbott Government’s plan to reimpose a 15 per cent superannuation tax on low income and part-time workers will leave more 45,000 workers in the region up to $500 worse off every year - with the retail and hospitality sectors being the hardest hit.
“Tony Abbott’s Super tax is an attack on the retirement savings of thousands of people in the Illawarra who earn under $37,000 a year – the majority of which are women” Sharon Bird said.
“A significant percentage of local low income earners are mothers working part-time while looking after young children.”
“This is exactly the part of a woman’s career where an additional $500 a year going into superannuation will be of most benefit for building savings for their retirement,” said Ms Bird.
“Government decisions demonstrate priorities”, said Jones.
“Clearly it is more important for Tony Abbott to give a tax break to 16,000 of Australia’s wealthiest people than millions of our struggling workers, who he will also slug with this retrospective tax.”
“It is an unfair tax that will hit every part of our economy – and Labor will oppose it every step of the way.”
“Tony Abbott and Joe Hockey need to explain to these workers and their families why they are being forced to pay more tax, but a few millionaires get to pay less.”
The decision to reimpose the super tax also comes on top of the Government’s plan to scrap Labor’s Schoolkids Bonus, the Income Support Bonus and delay the phase-in of the Superannuation Guarantee.