Labor again attacks voluntary retirement savings

29/11/11

Australians saving for their retirement will pay for Labor’s waste and mismanagement over the past four years with a cut in superannuation co-contribution payments and yet another effective reduction in concessional contributions caps.

“Bill Shorten and Labor continue to punish those Australians who are prepared to take responsibility for their own retirement needs,” Shadow Assistant Treasurer Mathias Cormann said today.

“By pausing indexation of concessional contribution caps Labor is again reducing the incentive for people to save more because the caps are not keeping pace with inflation and wage increases.

“The superannuation co-contribution scheme is a Howard government initiative which has provided valuable assistance for low income earners to boost their retirement savings.

"Labor continues to undermine those incentives which have encouraged increased voluntary savings.

“If Labor had managed our economy properly they would have no need to attack people who are trying to provide for their own retirement by making additional contributions to their superannuation.

“It is absurd that on one hand Labor wants to force people to contribute more in compulsory super while on the other hand they are removing incentives for people to make additional voluntary super contributions.

"Instead of increasing compulsion, the government should complement current compulsory savings levels with appropriate incentives for people to making additional voluntary savings – in particular at a stage of their lives when they are most able to do so," he said.

“Only a Coalition government can deliver stable financial management, bring the Budget back into surplus and create an environment where Australians are encouraged with appropriate incentives to save for their retirement,” Senator Cormann said.