The Low Income Superannuation Contribution (LISC) currently benefits up to 3.6 million low income earners (earning up to $37,000p.a.) by refunding their superannuation tax, each year, to the tune of up to $500 per person.
This initiative has been of particular benefit to women (approx. 2.1 million), many of whom are working part-time and looking after young children. This is exactly the point in their careers where these extra funds are most needed in contributing to their retirement savings.
The Abbott-Turnbull Government is seeking to scrap the LISC as part of its legislative package to remove the Mining Resource Rent Tax (MRRT). This comes on top of other announcements that target low and middle income earners, like the scrapping of the Schoolkids Bonus.
These cuts will particularly affect workers in the retail and hospitality sectors who will pay an additional $500 tax per year. At the same time, the Government is giving 16,000 of the wealthiest people in Australia a tax break on their superannuation earnings. The Abbott-Turnbull Government has also announced they will scrap Labor’s 15 per cent concessional tax rate on earnings above $100,000 in superannuation income streams – which will benefit about 16,000 people with superannuation assets typically over $2 million.
The Government need to explain to workers in the Cunningham electorate (about 19,900 of them in receipt of the LISC), and their families, why they are paying more tax and a few millionaires get to pay less.
The Government is prepared to continue to target lower paid workers and their families to put more money in the hands of the wealthy.
After already being rejected by the Senate, the Abbott-Turnbull Government has now voted a second time to scrap the LISC as well as the Schoolkids Bonus, the Income Support Bonus and delay the phase-in of an increase to the Superannuation Guarantee, hurting millions of Australian families.
Along with the rest of the Labor Opposition, I will continue to fight against these cuts for the people of the Cunningham electorate.
Please continue to support Labor as we fight to retain the Low Income Super Contribution.