“It is well established that superannuation overwhelmingly favours high income earners. If Australia is serious about ensuring all retirees have adequate incomes, superannuation reform must reverse this trend so that low income earners are not left with the Age Pension as their only source of income for the bulk of their retirement” said CPSA Policy Coordinator Charmaine Crowe.
“In 2007/’08, government expenditure to help low income earners boost their super accounted for just 5% of government expenditure on superannuation. This is because of the huge tax-breaks given to primarily high income earners by way of superannuation tax concessions.”“Expenditure on super tax concessions in 2007/’08 was $28.8 billion – more than Age Pension expenditure for the 2008/’09 financial year ($28.5 billion).”
“According to Treasury, about 50% of workers earn less than $45,000 per year. Treasury predicts that this group will still be heavily reliant on the Age Pension, even after the superannuation guarantee matures.”
“Without reform, Australia will continue to see retirement income gaps grow between high and low income earners, and those who were able to remain in full-time employment over their entire working lives, and those who could not.”
“Although the Australian Government’s last budget put in place measures to reduce expenditure on super tax-concessions, no effort has been made to redirect savings toward low income earners. Without this effort, poor incomes will continue to be the standard when it comes to retirement.”
Media contact: 0410 612 182
Charmaine Crowe
Policy Coordinator
Combined Pensioners and Superannuants Association (CPSA)
Level 9, 28 Foveaux Street Surry Hills NSW, 2010
Phone (02) 9281 3588
Mob 0410 612 182
Fax (02) 9281 9716