Low earners hit hardest
Self-managed super set to suffer
MORE than half of the 288,000 Victorians hit by Labor’s multi-billion-dollar tax grab have a taxable income of less than $18,200 a year.
New data obtained by News Corp shows that despite Bill Shorten’s claims about targeting the wealthy, just 3.1 per cent of Victorians who face losing their annual share tax refunds earn more than $87,000.
More than 1.1 million taxpayers would be caught up in Labor’s plan, along with about 200,000 self-managed super funds — nearly a third of which are run by Victorians.
It can also be revealed about 370,000 individuals — including retired couples and families — are beneficiaries of the affected super funds.
Mr Shorten, who argues that the share tax credits are “millionaires’ welfare”, says Labor will announce further policies to help pensioners and likely offset the impact of scrapping the cash refunds.
Revenue and Financial Services Minister Kelly O’Dwyer said the Opposition’s policy was “just another Labor tax grab” which will hit nearly 152,000 Victorians earning less than $18,200 a year and 610,000 nationwide.
“Bill Shorten classifies these people as ‘millionaires’, but these are Australians who have paid taxes their whole lives and want to live a comfortable, not lavish, life in retirement,” Ms O’Dwyer said. “Labor has declared war on aspirational Australians and older Australians who have worked hard to support themselves during retirement.”
“It was Bill Shorten who only last year said: ‘I don’t believe that another tax is going to be what Australians need or want at this stage’. It just goes to show you can’t trust Bill Shorten.”
The issue looms as a likely flashpoint in marginal seats with more than 6500 Victorian pensioners to be affected in the must-win Liberal held electorates of Chisholm, Corangamite and Dunkley.
Mr Shorten said Labor’s weekend victory in the Batman by-election was vindication that “pensioners are always going to do better under Labor”.
“We’re far more fair dinkum on pensioners,” Mr Shorten said on Sunday. “We want to decrease the gap and out of pocket costs paid for by pensioners. We don’t support the Turnbull Government creating the world’s oldest pension age, the age of 70.”