Opposition Leader Bill Shorten has said it is not Labor policy to index the $75,000 threshold for taxing pension phase super fund income.
Mr Shorten was asked on Adelaide radio if the $75,000 threshold for taxing pension phase super fund income at 15% would be indexed.
“That’s not in our policy,” he answered twice, according to The Guardian.
Labor announced in 2015 a policy of taxing pension phase superannuation fund income above $75,000 at 15%. This is very similar to a policy announced, but unenacted, when Bill Shorten was the Minister for Financial Services and Superannuation during the last Labor government. However there remains a number of unanswered questions around the policy – if it is per individual how will it deal with multiple pension accounts in different funds, how will capital gains be treated and, until today, would the threshold be indexed?
In the interview Mr Shorten also said he though the policy was fair. When asked if not indexing the threshold would mean increasing numbers of people are affected by the policy he said:
“Yes, but what I’d also say, before we start having some big panic about Labor’s policies on superannuation, is that we’re proposing 15% for income above that. This is the interest earned from superannuation. Very few Australians are earning $75,000 in interest but if you earn more than that you will be paying 15% on the amount above that.”
Labor estimates the change would boost Government revenue by $1.4 billion over the forward estimates, from 2016/17, and by $9.2 billion over the 10 years to 2026/27.