More than 8.4 million Australians will receive additional money in their superannuation accounts from today thanks to Labor’s increase to the Super Guarantee.
But today’s rise in the superannuation guarantee to 9.5 per cent will be the last increase workers see until 2018 – because Tony Abbott has frozen superannuation increases for the next four years.
As a result of the Abbott Government’s superannuation freeze, the superannuation guarantee will now not reach the full 12 per cent until 1 July 2022, a full three years after it would have under Labor.
Despite promising “no adverse unexpected changes to superannuation” before the election, since being elected Tony Abbott has announced two freezes to the increase of the superannuation guarantee. The second was announced just weeks ago in Tony Abbott’s unfair and unaffordable Budget.
Industry estimates the Abbott Government’s first superannuation freeze alone will mean approximately $40 billion less in Australian superannuation accounts by 2023 – this figure does not include the impact of the second pause.
These hits to the super balances of millions of Australians are coming from a Prime Minister who said “we have always as a Coalition been against compulsory superannuation increases.”
[Tony Abbott – Press Conference – 23 March 2012]
Today’s freeze comes on top of the Tony Abbott cutting the Low Income Superannuation Contribution – which will see super tax increase by up to $500 a year for 3.6 million low income Australians earning $37,000 or less, including 2.1 million women.
Tony Abbott has cut pensions, he’s cut assistance for seniors – now he’s cutting the superannuation savings of every working Australian.
Australians will receive less in their superannuation accounts every single day they work because of Tony Abbott.
Superannuation contributes significantly to national savings, employment, financial stability and economic growth and takes the pressure off the Age Pension.
Labor created universal superannuation, we have grown it, supported it and we will always fight for it.
What Tony Abbott’s superannuation freeze will mean for Australians:
|
Year |
SG charge percentage |
|
|
Labor |
Coalition |
|
| Year Commencing 1 July 2013 |
9.25 |
9.25 |
| Year Commencing 1 July 2014 |
9.5 |
9.5 |
| Year Commencing 1 July 2015 |
10 |
9.5 |
| Year Commencing 1 July 2016 |
10.5 |
9.5 |
| Year Commencing 1 July 2017 |
11 |
9.5 |
| Year Commencing 1 July 2018 |
11.5 |
10 |
| Year Commencing 1 July 2019 |
12 |
10.5 |
| Year Commencing 1 July 2020 |
12 |
11 |
| Year Commencing 1 July 2021 |
12 |
11.5 |
| Years starting on or after 1 July 2022 |
12 |
12 |
TUESDAY, 1 JULY 2014
MEDIA CONTACT: LEADER’S OFFICE MEDIA UNIT 02 6277 4053
CHRIS RAMSAY 0430 009 434 (RIPOLL)
