Shorten defends $3.75bn retiree savings grab

Labor leader defends his tax policy despite it having the potential to wipe more than $3.75 billion from retail super funds.

Shorten says pensioners will be protected from the policy change. Picture: Brendan Radke

Bill Shorten has defended his dividend imputation crackdown despite the revelation it could wipe more than $3.75 billion from retail superannuation funds over the next decade.

The Opposition Leader labelled the revelation, published in The Australian this morning, as “rubbish” but would not elaborate on any factual inaccuracies in the report which has been leapt on by Scott Morrison.

Mr Shorten said he would rather spend taxpayer’s funds in public infrastructure rather than cash handouts to people who pay no income tax.

“Let’s be clear here: our changes are fair, this nation afford to keep handing out billions of dollars to people merely because they pay no income tax but happen to own a lot of shares,” Mr Shorten said in Townsville today.

“Now it is perfectly legal now but we have got to look at our priorities, if I have a set amount of government money, I’d rather spend it on reducing the aged care waiting lists, I’d rather spend it on helping Townsville Hospital, I’d rather spend it on improving water security in Townsville, than handing out literally tens of thousands of dollars as an income tax refund to people who pay no income tax, it is just not sustainable.”

He added pensioners would be protected from the policy change, which would axe cash refunds for franked dividends.

“If you are currently in receipt of the aged pension, full or part, we will make sure the modest credits you get remain but beyond that the nation has to make some hard decisions and I’m prepared to do that,” he said.

Mr Morrison said this morning pensioners would get hit by Labor’s changes if they had money in a retail superannuation fund.

“What that means over 10 years, which is what Labor say they have been costing this policy over, that is ripping some $3.7 billion of savings away from Australian retirees, from pensioners, from people with their investments in super funds,” Mr Morrison said.

“Labor keep saying that it’s not impacting anyone but as each day goes on, the smell just gets greater from this brutal and thieving tax of Labor on denying people their tax refunds.

“So Labor just has to come clean about this. Bill Shorten has got to stop being shifty about his tax increases on the Australian public because under Bill Shorten Australians will definitely pay more.”