Scrapping of low income contribution not so super

Several million Australians will be disadvantaged by the scrapping of the low income super contribution, National Seniors says.

Treasurer Joe Hockey on Wednesday ruled out any new taxes in the first term of government but also said it would go ahead with plans to scrap the annual government super contribution for workers earning less than $37,000 a year.

The move is expected to affect around 3.6 million low paid workers, including 2.1 million women.

“Low income Australians already struggle to fund their retirement so this change will be a blow,” National Seniors chief executive Michael O’Neill said.

“We welcome the government’s other announcements yesterday which promise greater certainty and clarity in what is a highly complex tax system.

“We also welcome the government’s plan to drop Labor’s proposals to increase tax on super funds earning over $100,000, which, according to experts would have been impossible to implement.

“‘What is missing is policy to enable low funded workers to maximize their retirement income and to age with dignity.”

Featured Article