Liberal Party launches ‘retiree tax’ scare campaign against Labor in crucial Eden-Monaro by-election

The franking credits scare campaign is targeting self-funded retirees ahead of the Eden-Monaro­ by-election.

Labor candidate for the seat of Eden-Monaro Kristy McBain. Picture: AAP

The Liberal Party has revived its “retiree tax” scare campaign against Labor in the Eden-Monaro­ by-election, telling self-funded retirees Anthony Albanese “still has a plan to come after your retirement security”.

With polling day on July 4, The Aust­ralian has obtained an email from Liberal MP Tim Wilson sent to “hundreds” of targeted retirees in the marginal NSW seat claiming the Opposition Leader has left open the possibility of introducing a different crackdown on franking credits.

“In 2019 Labor was prepared to introduce a retiree tax that could have cost you a third of your ­income overnight,” writes Mr Wilson­, who chairs federal parliament’s standing committee on economics.

“Labor still has a plan to come after your retirement security.Anthony­ Albanese has said he ‘won’t be taking the same policy to the (next) election’. Just like Labor said that they weren’t going to ­introduce a carbon tax, Albanese has given himself wriggle room to introduce a slightly different retire­e tax if elected.”

Labor’s franking credits overhaul, which the Parliamentary Budget Office found could impact on more than 200,000 self-managed super funds, was one of the party’s most controversial policies.

It was expected to recoup about $6bn annually in lost revenue by ending excess refunds paid when franking credits are in excess of a shareholder’s tax liability.

Former Labor leader Bill Shorten has conceded “we misread the mood in terms of the franking credits”, while Mr Albanese has said one of the policy’s problems was that it altered retirement plans people had made in good faith.

“I have on multiple occasions stated that we have reversed the position we took to the last election­,” Mr Albanese told The Australian on Tuesday.

“I am not surprised that Mr (Scott) Morrison is embarrassed that it has taken polling booths to open in Eden-Monaro for him to give support to areas devastated by bushfires six months ago.”

Labor sources said the retiree-tax scare campaign was a distraction from the bushfires recovery, after the government announced it would unlock a further $76m in targeted grants to help the forestry industry, wine producers and apple growers rebuild.

The ALP’s final-fortnight campaign­ ad for the Eden-Monaro­ by-election, triggered after the resignation of popular former member Mike Kelly, targets the government’s vulnerabil­ities on JobKeeper and its bushfire response. The opposition holds the seat on just 0.85 per cent.

“If you think small businesses need more support and can’t afford­ to lose JobKeeper just yet, the Eden-Monaro by-election is your chance to tell the Liberals that,” the ad says.

“If you think it’s not OK the Liberals keep promising the Barton­ Highway duplication but never deliver it, this is your chance to tell them that too. And if you think local communities shouldn’t still be waiting for bushfire relief, send the Liberals a message.”

Mr Wilson said his committee’s hearings in Eden-Monaro were the best-attended outside capital cities last year.

The ALP’s 2019 election review found voters most likely to be affected­ by the franking credits crackdown swung to Labor.