The ACTU welcomes the Albanese Government changes to superannuation to make it fairer, and address inequities that were built in by previous Coalition Governments.
The Low-Income Superannuation Tax Offset (LISTO) was designed to ensure workers on low income paid less tax on their super than they did on their take-home pay, but it hadn’t been adjusted to keep up with the rest of the tax system. By lifting it, a part-time aged care worker will take home an additional $60,000 at retirement, according to Super Members’ Council modelling.
Today’s announcement means that low-income workers will not pay more tax on their super than they do on their take-home pay and will have thousands more at retirement. It gets support to those who need it most.
Today’s announcement, alongside the Government’s announcement to further rein in excessive tax concessions on the highest super balances will make the superannuation system fairer. Super is meant to deliver a universal right to a dignified retirement, not be a tax haven for the ultra-wealthy.
Quotes attributable to ACTU Secretary, Sally McManus:
“We welcome the package of measures announced today by the Treasurer, Jim Chalmers that will make our superannuation system fairer and builds on the enormous strides already taken over the last three years – the superannuation guarantee reaching 12%, paying super on pay day, putting superannuation in the National Employment Standards to stamp out super theft, and paying superannuation on Commonwealth Paid Parental Leave.
“Super has always been about everyone having a dignified retirement, not a tax minimisation scheme for the ultra-wealthy. The big winners in this announcement are around one million low-income Australians, who are mostly women, working part-time, and who will now have more money for retirement.
“They are the people who need tax concessions, not the 0.5% who already have more than $3 million in their superannuation accounts.
“The union movement is proud to have been part of establishing Australia’s superannuation system with the Keating Government. It has completely transformed the lives of retired working people over one generation.
“Our super system is the envy of the world; it has turned Australia into a net capital exporter, broken the back of the balance of payments and is transformational for the economy.
“This Government continues the work of achieving the ultimate goal, which is for all workers to have a dignified retirement.”
