Self-funded retirees are set to be hit with a double tax if Labor’s proposed ‘retiree tax’ is implemented after the next Federal election.
National Director for Advance Australia, Gerard Benedet, said the Federal Opposition’s tax grab would impact almost 1.1 million self-funded retirees, including those on low incomes.
“84 per cent of Aussies set to be impacted are on taxable incomes below $37,000,” he said.
“What Labor’s proposed legislation does is target ‘middle Australia’ by punishing people who have done the right thing and saved for retirement.
“For years, Aussies have planned for retirement on the fair assumption that dividend imputation rules, which have historically shared support from both sides of politics, would support their retirement income.
“What Labor is proposing is for Australia’s self-funded retirees to pay tax not once, but twice – meaning they will pay tax on already taxed company profits.”
Mr Benedet fears the ‘retiree tax’ will eventually extend to pensioners.
“Self-funded retirees are distraught at the prospect of a significant cut to their retirement income, and at the end of the day, that’s just unfair – this isn’t the Australia we know and love.”
For more information or to take action, visit www.advanceaustralia.org.au