Over the last few months, I have had many people contacting me about the impact that Labor’s retirement tax would have on the income families rely on. Labor’s Retiree Tax would hurt retirees and low income earners, by abolishing tax refunds for share dividends.
It would punish people who did what governments have been encouraging them to do for years to—work hard, invest and save in order to be self-reliant in retirement. Labor’s policy means more people would be forced to rely on the Age Pension. Most people affected by Labor’s retirement tax are not wealthy. In fact, 84% of people who would be impacted are on taxable incomes below $37,000.
One of the myths of the retirement tax is that it would affect one generation only. But that is not true. In many families across the Berowra electorate many retirees help their kids with their grandchildren’s expenses. Labor’s retiree tax would put an end to this too. Retirees are also among our most generous givers so there would also be less money going to charity. The cost of living is a serious challenge in Sydney.
Taking money from people who have saved so that they have to rely on the public purse is not a solution. We need to do more to support and encourage people to take responsibility, to start businesses, to invest and plan for the future.
This tax punishes people for doing the very things that all Australians should be encouraged to do.