Palmer’s LISC backing applauded
Superannuation bodies have welcomed the move from the Palmer United Party (PUP) to save the Low Income Superannuation Contribution (LISC) scheme.
In what could be a blow to the Abbott government's deficit recovery measures, Clive Palmer announced his party supported the repeal of the mining tax but would vote down additional savings measures such as the LISC.
The Australian Institute of Superannuation Trustees (AIST) and Women in Super (WIS) said the senators in the PUP would be supporting 3.6 million working Australians receive the scheme.
"The PUP senators have recognised that the LISC is good policy," AIST deputy president and chair of WIS Cate Wood said.
"It is neither a benefit payment nor a handout but a method of refunding a low income earner for the 15 per cent contributions tax they pay on their compulsory super by up to $500 a year."
More than 30 voices from the super industry, business, academia, women's organisations and policy and community groups wrote a letter to Palmer last month, emphasising the importance of the scheme.
The letter said many low paid women, part-time, casual and rural workers benefited from the scheme, with many from these groups making up the PUP faithfuls.
It gives workers who earn $37,000 a year or less a rebate of up to $500 on tax paid on super contributions.
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