8 November 2016
Media Release - #2016100, 2016

In the role of: Minister for Revenue and Financial Services [19 July 2016 - 28 August 2018]

Labor’s super backflip to hit women, carers, small business and farmers

Labor’s superannuation tax grab will thwart people who are in and out of the workforce from catching up on their super contributions, the Minister for Revenue and Financial Services Kelly O’Dwyer said today.

The Government’s flexibility reforms to super are aimed at supporting and encouraging all Australians to save for their retirement; and in particular help workers with super account balances of less than $500,000.

“Our reforms to superannuation are aimed at improving the sustainability, fairness, flexibility and integrity of the superannuation system,” Minister O’Dwyer said.

“Our changes will help women, who may have taken time out of the workforce to raise children or to care for a family member. They will also help people with irregular income patterns, such as farmers, as well as small business people and their employees by allowing them to claim a tax deduction for personal super contributions.”

By contrast Labor’s changes will prevent people in these cohorts from having the opportunity to build up their super balances.

Legislation to go before the Parliament tomorrow will improve the superannuation system by:

  • Permitting the rollover of unused concessional caps so that Australians with superannuation balances of less than $500,000 who have interrupted work arrangements can make ‘catch up’ superannuation contributions;
  • Allowing more Australians to claim a tax deduction for personal superannuation contributions assisting around 800,000 people;
  • Encourage partners to make contributions to their low income spouses’ super where their spouse has an income under $40,000 per annum; and
  • Allowing all people aged under 65, and those aged 65 to 74 who meet the work test, to be able to claim a tax deduction for any personal superannuation contributions to an eligible fund up to the concessional contributions cap.

“Labor has changed its position on super countless times. Even today, Labor’s superannuation spokeswoman, Katy Gallagher, is on the record that Labor has yet another superannuation plan that they are yet to announce,” Minister O’Dwyer said.

“This was also confirmed by the Leader of the Opposition in his press conference.

“Labor sees superannuation as just another honeypot from which to draw revenue. You just can’t trust Labor with superannuation.”