Labor's super plan shopped around
Labor has proposed superannuation tax changes that it says would bring more than $14 billion from over 10 years to the federal coffers.
The ALP has unveiled a two-pronged plan; removing the tax-free status for retirees on annual superannuation earnings above $75,000, and increase the bracket in which people pay 30 per cent tax on contributions.
Opposition Leader Bill Shorten said such reforms would keep the super system sustainable.
“These changes are all about putting fairness back into the system,” he said.
“These changes are good for the future integrity of Australia's pensions and superannuation system.
“They are fair, and they're good for the budget.”
When it last held federal office, Labor brought in a new superannuation charge for those that earn more than $300,000 a year.
People in that bracket now have their contributions taxed at a rate of 30 per cent, compared to 15 per cent for everyone else.
But the new proposal would see the 30 per cent contribution tax rate expanded to apply to those earning over $250,000 a year.
The ALP says 110,000 people would fall under the proposed arrangements, raising $5.1 billion in the decade to 2026-27.
The second part of the plan is to tax earnings over $75,000 from superannuation accounts at a rate of 15 per cent.
Currently, such earnings for retirees in the pension phase are tax-free.
Labor says this move would affect about 60,000 people, whose superannuation balances are over $1.5 million, to raise $9.2 billion in the decade 2026-27.
Labor leader Bill Shorten and shadow treasurer Chris Bowen have been spruiking the plan to media outlets today, and will elaborate on it at the National Press Club.