Retirees hit by Bill Shorten’s billion dollar tax grab only have taxable income just over $18,000
MORE than half of NSW retirees hit by Labor’s billion dollar tax grab have a taxable income of less than $18,200, according to new Australian Australian Taxation Office figures.
NSW
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MORE than half of NSW retirees hit by Labor’s billion dollar tax grab have a taxable income of less than $18,200, according to new Australian Australian Taxation Office figures.
Analysis of new figures show despite claims Labor’s move to stop retirees claiming cash refunds on share tax credits would hit only the rich, just 12 per cent of those affected have a taxable income of more than $37,001.
Labor’s tax plan will affect more than 1.1 million taxpayers and 201,570 self-managed super funds — of which more than 63,000 are in NSW.
Revenues Minister Kelly O’Dwyer seized on the figures to brand the plan “just another Labor tax grab”, and an “attack on more than one million Australian taxpayers”.
“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.”
The tax fight looms as an electoral test for Opposition Leader Bill Shorten in NSW, with almost half of the 84,000 pensioners in the state who stand to lose money living in tight marginal or Labor seats.
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Labor insiders have repeatedly claimed there will be no change to the policy in the short term, despite Mr Shorten signalling he would have “more to say” on saving pensioners from losing part of their tax refund.
“When it comes to pensioners, pensioners are always going to do better under Labor,” Mr Shorten said on Sunday.
“We’re far more fair dinkum on pensioners, and we will have more to say in the future about our good deal for pensioners.”
Superannuation income withdrawn after the age of 60 is usually tax free, and does not contribute to a retiree’s taxable income.
That means some retirees with very low taxable income could still be receiving considerable super contributions.
Industry Super Australia modelling shows if Labor changed its plan and put a $1000 cap on the cash refund rather than cancelling it entirely, some 350,000 retirees would be saved from losing money.
The analysis of ATO figures obtained by the Daily Telegraph shows 210,518 people in NSW — or 55 per cent of all those affected by Labor’s plan — have a taxable income of less than $18,200 every year.
Another 124,765 — or 32.69 per cent — have a taxable income of between $18,201 and $37,000.
In 2015, Mr Shorten slammed the Coalition for a move which cut part-pensions for wealthier retirees who had substantial assets.
“They don’t have a big superannuation nest egg, but what they are counting on, they are working hard to save as much as they can,” Mr Shorten said at the time.