Labor’s Retiree Tax would hit over 1 million Australians who have worked hard and saved for their retirement.

On average, these retirees would lose almost $2,300 a year – and more than half of them are women. On top of this, self-managed super funds would lose $12,000 a year. 

This is a huge slap in the face to the very people who built the communities and regions we love, the people who have already done their part and saved their money to support themselves in retirement.

Labor claims their Retiree Tax will only slug the wealthy, but the truth is that 84% of Australians who would be affected are on a taxable income of less than $37,000. 

They have no respect for those who have worked hard, paid taxes and planned for an independent retirement.

When Shadow Treasurer Chris Bowen was challenged on the controversial policy, he said retirees who didn’t like it can “vote against us”.

That’s the first sensible thing Labor has said.

THE FACTS:

Most people who would be affected are not wealthy:

  • 84% are on taxable incomes below $37,000.
  • 96% are on taxable incomes below $90,000.
  • Around half are 65 years or older.
  • More than half of those affected are women and nearly half are single or widowed.

Around 50,000 pensioners will be affected:

  • Pensioners who set up self-managed super funds after March 2018 will be affected.
  • Those with self-managed super funds who become pensioners after March 2018 will also be affected.

WHO WILL LABOR’S RETIREE TAX HIT?

“For self-funded retirees and SMSF members this is a cruel blow… they will lose up to 30 per cent of their income in one hit… the end result will be to drive many retirees onto welfare.” 

– The Alliance for a Fairer Retirement System Chair, Deborah Ralston

“This hit on retirement incomes… can substantially damage the lifestyles of retirees who have prudently saved and are carefully drawing down on their retirement savings.” 

– Self Managed Super Funds Association, 13/2/2018