Superannuation review delivers on Greens negotiations

Superannuation review delivers on Greens negotiations: $30b in clumsy tax concessions needs urgent attention

Australian Greens Acting Leader Christine Milne today welcomed the Government’s superannuation review announcement, which delivers on a Greens’ proposal, and said $30 billion in tax concessions needed to be dealt with to ensure a fairer outcome.

“As part of the discussions about the mining tax package the Greens had detailed discussions with the Government about the revenue going to superannuation, and the need to review superannuation tax concessions, because significant changes should be made to make the system more equitable,” Senator Milne said.

“Current superannuation tax concessions are enormous. The inequities they present for people trying to save for their retirement should be addressed as soon as possible. There are $30 billion worth of superannuation tax concessions per year. Almost half those tax breaks go to the wealthiest 12% and almost a fifth go to the wealthiest 2% of Australians.

“The current clumsy arrangements do nothing to narrow the gap between rich and poor. If you are on the top marginal tax rate of 45% your tax break on super is up to 30%. If your earnings are taxed at the lowest marginal tax rate of 15% then your concession is zero. If you do not pay income tax, you still pay 15% on any superannuation contribution.

“Dealing with these inequities should occur before the Senate finalises the mining tax package [which includes the increase in the superannuation guarantee from 9% to 12%]. The review’s timetable appears too long, as legislation for the mining tax and super guarantee increase will be debated in the Senate this year and this should be settled by then,” Senator Milne said.

“It is important that these issues are dealt with as soon as possible and are not solely dependent on a mining tax package that has already been significantly watered down by the Government.

“Inequality in Australia is growing and unless superannuation tax concessions are altered this can only get drastically worse,” Senator Milne said.

Greens Deputy Leader, Senator Christine Milne