Tim Wilson (Goldstein, Liberal Party) Share this | Hansard source

Today, I rise to defend the hardworking residents of Goldstein that have sacrificed and saved to be able to stand with dignity and purpose in their retiring years. That stands in direct contrast to the proposals being put by our opponents, the Labor Party. Their retiree tax will hurt every single Australian—those that have sacrificed to be self-funded retirees, pensioners, lower income earners, new home buyers and small business. For all the rhetoric they go on about—taxing multinationals, big corporations and millionaires more—it's becoming increasingly clear every day that Labor's hunting down our vulnerable grandparents to fund their election promises. Many have sacrificed their whole lives, made modest investments, ridden economic cycles, and forgone holidays and luxuries so that they can be self-reliant, stand on their own two feet and not be dependent on the taxpayer. Their incomes aren't high, because they're simply living off the savings and modest investments they've made throughout their life.

Yet, under Labor's retiree tax, they're the first to be hit. Labor's retiree tax will hit 230,000 pensioners and 610,000 Australians on taxable incomes of less than $18,200 per year, including many self-funded retirees in Goldstein that have written to me directly—people like Terry and Sandra from Black Rock, who wrote:

Whilst we are self funded we are by no means wealthy and our joint income is less than $80,000 per annum and Franking Credits are a significant part of our income strategy. We have paid taxes and worked hard to be self funded retirees and not rely on payments from Centrelink but we now believe that we may have been better off being more frivolous prior to retirement so that we could have part qualified for a government pension—

under Labor's retiree tax. William of Highett identified that, based on his single ATO assessment for the year 30 June 2017, the ATO cash refund of $6,920 represents 17 per cent of his disposable income. These are the people who will be hit hardest by Labor's retiree tax, and they are the ones that those in this parliament should be standing up for—the people who have sacrificed and saved.

Labor's retiree tax is also targeting small businesses that buy shares in Australian companies and claim tax refunds from dividend imputation to sustain them through the tough times. Anybody who's been involved with business will know that it isn't always up, and multiple sources of revenue often keep businesses afloat during the tough times. The irony, of course, is that Labor's retiree tax is attacking the system that they set up, which was actually supposed to encourage aspiration, and that system of aspiration used to have bipartisan support. Not only will Labor's dividend retiree tax target lower income Australians; it will also have a devastating unintended impact on younger Australians seeking to get into the housing market.

Not unsurprisingly, retirees simply looking to protect and secure their own future will find that investing in shares and getting dividend imputation credits will become less attractive over time. What will they do? They will simply look for more attractive investment vehicles. Principally, I suspect, they're going to turn to property. Moving their capital from shares to property will only drive up demand for property in this country and increase prices, directly hitting younger Australians who are trying, for the first time, to break into the property market so they can buy their own home for themselves and their family, to stand on their own two feet and secure the same opportunity as generations past. The competition will only get worse and make homeownership harder for young Australians. The tragedy of Labor's retiree tax is that it is a reminder that they are not the Labor Party of old. Today they are a party that gives little opportunity for young Australians to have their first go at homeownership, and, equally, for older Australians to secure their interests for retirement so they can stand on their own two feet.

We on this side of the parliament want to see Australians overcome disadvantage. Our attention is not on those with wealth; our attention is always on those who aspire to join them, who seek opportunities. Labor is kicking the security out of exactly those people.

See this speech in context