Thursday, April 23, 2015

CPSU: ALP Super tax move a good first step

APR 22, 2015

Super tax move a good first step, with more to do, says public sector union

The Community and Public Sector Union welcomes the Opposition’s plan to tax the superannuation of high-income earners as a step in the right direction to key policy principles of fairness and sustainable revenue.

Under Labor’s proposals retirees would lose tax-free status on annual superannuation earnings above $75,000, and more people would pay 30 per cent tax on contributions, which would raise $14 billion.

CPSU National Secretary Nadine Flood said the moves would inject some fairness into super and tax.

“Labor’s announcement is a positive first step towards a fairer superannuation and tax system. Superannuation tax concessions have become a bonanza for high-income earners, while average Australians pay their fair share of tax at work and in retirement.

“It’s good to see Labor showing leadership on the need to have sustainable revenue, based on fairness, so Australians can get the support and services from Government they expect and deserve. The contrast with the shrill voices protecting multi-billion dollar tax concessions for our wealthiest, while cutting pensions, health, education and public services, is striking.”

“This policy would partially reverse Peter Costello’s give-aways to the wealthiest minority, which are now proving unsustainable and costing ordinary Australians.”

Ms Flood urged Labor to go further, and said that the policy principles of fairness and sustainable revenue needed to meet the community’s needs should be applied in other areas.

“Increasingly our community is calling for high income earners and big business to pay their fair share. We encourage Labor to consider further changing the capital gains tax discount and corporate tax measures such as the Buffett rule. There is also plenty of room to move on further measures to close loopholes that allow the very wealthy to use super as a vehicle to avoid paying their fair share of tax,” Ms Flood said.

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