Retirement Savings Slashed by Kevin Rudd's Tax on Mining
Mon, 10 May 2010
The retirement savings of self-funded retirees have been struck down by Kevin Rudd’s great big new tax on mining with billions of dollars wiped off the value of their superannuation.
Senator David Bushby, Coalition Economics Chairman, said just the announcement by Kevin Rudd of his new tax had slashed the retirement savings of Australians by an estimated $6b in the first three days.
Senator Bushby warned that since the news of this tax first broke in the media on 13 April 2010, Australians had lost $14.5b from their retirement savings.
In a shallow effort to distract from the damage it was doing, Labor was engaging in an outright lie trying to say the mining tax would pay for the increased superannuation guarantee.
“This is just plain wrong. It’s a lie,” Senator Bushby said.
“There is no connection between this tax and the plans to increase superannuation savings for current employees, or to cut corporate taxes for business.
“Labor’s great big new tax on the productive mining industry is not paying for the lift in the superannuation guarantee to 12% - business will pay.
“The slug on mining companies does not translate into money in employees’ pockets – it translates into less return for Tasmanian miners, less investment and job in Tasmania, and an attack on the financial standing of mining businesses.
“The very industry that saved the Australian and Tasmanian economies.”
Senator Bushby said it was important that Australians were able to save for their retirement. Boosting national savings was a good thing but under Kevin Rudd’s changes many Australians would pay for his changes to superannuation with their jobs.
Self funded retirees have had no joy from the Rudd Government during the past two and a half years.
“People who have worked hard to build their retirement savings have been slugged with one attack after another from Kevin Rudd. The attempt to remove health concessions and means test rebates from private health insurance are now followed by a great big tax that will undermine the performance of their investments.
“Kevin Rudd’s decision to try and kill the goose that has laid the golden egg for the Australian economy demonstrates Labor’s lack of understanding of what makes our economy tick,” Senator Bushby said.
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