Nov 9, 2011

Low-Income workers in Inner West to pay no tax on super

Nearly 25,000 workers in the Inner West earning under $37,000 a year will pay no tax on their superannuation, under the Gillard Labor Government’s Low Income Superannuation Contribution.

This will help hard working people, including mums working part-time, cleaners, shop assistants, child care workers, hospitality staff and many others on low-incomes.

The Low Income Superannuation Contribution will assist around 3.6 million low income Australians, who currently pay up to $500 a year in tax on their superannuation, save more for their retirement.

In particular, the superannuation savings of over 2.1 million Australian women, who tend to earn less than men, will be boosted by over $500 million in 2013-14 alone.

There’s no point working hard all your life only to retire poor.

From 1 July 2012, low income workers will have the tax they pay on their superannuation automatically refunded straight into their superannuation account, without having to fill out a tax return or any other paperwork.

Of course, the Coalition plan to scrap this important reform, ripping away the extra retirement savings from local low income workers. It’s about time Tony Abbott and the Coalition stopped saying ‘no’ to everything and did what was best for Australian workers.

A 30 year old permanent part‑time worker earning a quarter of the average weekly earnings and who receives the contribution for 20 years of their working life, will receive eight per cent more in real retirement benefits or around $13,000 extra in their superannuation account.

Superannuation should be of benefit to every Australian worker, no matter how much you earn. The Gillard Government is making the superannuation system fairer by assisting workers on low incomes achieve financial security and build their wealth for their retirement.