Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer update the House on how the government's strong economic record benefits all Australians saving for their retirement, including those in my electorate of O'Connor? Is the Treasurer aware of any alternative proposals?

Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Link to this | Hansard source

The member for O'Connor is proud to be part of a government that has created more than 1.2 million new jobs, a government that's brought down the unemployment rate to the lowest level in seven years, and a government that, on 2 April, will deliver the first budget surplus in over a decade. That's what you get from disciplined, strong economic management. We can deliver the essential services—record funding on hospitals, record funding on schools, record funding on infrastructure and defence spending—without increasing taxes like those opposite are promising to do. Of their $200 billion of new taxes, one of the most punishing, one of the most unfair, is their dreaded retiree tax—a $55 billion slug on older Australians; Australians who have done nothing wrong except plan and prepare for their own retirement. That is over one million Australians. Individuals will be on average $2,200 a year worse off under Labor, and, of the 200,000 self-managed super funds, they will be on average $12,000 a year worse off under the Labor Party.

Now, don't believe the Labor Party when they say this doesn't affect pensioners, because Labor's retiree tax will hit pensioners. If you were a pensioner before 28 March last year and you establish a self-managed super fund after that date, the Labor Party hit you with a higher tax. If you were in a self-managed super fund before 28 March last year and you become a pensioner after that date, the Labor Party could slug you with their retiree tax as well.

And the Labor Party's policy disproportionately affects women. Over half of those people affected by the retiree tax are women, and over two-thirds are over the age of 60. Around half are single or widowed. That's the Labor Party's policy.

The Labor Party's cash grab goes against everything that they stood for previously. Simon Crean said of the existing system:

… it improves the current taxation situation faced by low income investors, especially retired Australians.

Now, the Labor Party and the member for McMahon arrogantly dismiss the concerns and fears of over one million Australians by saying, 'If you don't like our tax, then don't vote for us'. I've got news for him: come the election, they won't be voting for you.