Labor’s retiree tax unfair

Darryn Capes-DavisOpinion

My parents have worked hard through their lives. Now at a time of their lives when they are vulnerable, Labor plans to rip through their hard-earned savings with a tax grab like no other.

Dad (my stepfather) worked with BP for most of his career before becoming a part time TAFE teacher in English, Maths and Engineering. Mum worked as a TAFE Counsellor for most of her career. They worked hard. I actually learnt most of my love for cooking from Dad, who worked early shifts and would pick us up from the bus stop and cook the evening dinner. Mum often worked late and had her dinner heated on the stove in the days before the microwave.

Mum and Dad have saved during their working life and now manage their super fund. They invest in Australian companies. This fact is one missed by many commentators. A franking credit becomes available when an Australian company they have invested in makes a profit. Like my mum and dad, everyone who saves has the opportunity to invest in an Australian company to get a return. Fairly, the company is taxed, with franking credits given to investors along with their dividends.

If my parent’s situation in a year is such that a tax refund is due then that is fair. They have worked hard, have saved, and have been able to invest in Australian securities. This type of investment is the engine room of the Australian economy. If a tax has been paid based on this investment, it is fair that this tax liability be treated fairly. Anything else is like saying that your hard work as an employee falls short of claiming a tax refund if due.

Making matters worse, Labor is purporting the ‘she’ll be right’ message as they claim that industry superfunds won’t be affected. Of course that’s right, because this tax grab is from those they dare to not vote for them, not from their mates.

I am sure that the Labor tax grab won’t stop here. Next will be GST credits for small business. No GST refund for you. Perhaps even the base of the tax system. Labor may declare you are earning too much and hence the tax-free threshold won’t apply to you, taxing you from $0. Labor will grab tax, they always have, and they always will.

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