Both the Minister for Financial Services and Superannuation, Bill Shorten and the Australian Institute of Superannuation Trustees (AIST) have claimed the Federal Opposition is planning to abandon the Government's superannuation tax break for low income earners.
Both the minister and AIST chief executive Fiona Reynolds claimed media reports surrounding the Coalition's intentions towards the so-called "low income superannuation contribution" (LISC) dictated the Opposition spell out its position.
Reynolds called on the Opposition to commit to the scheme which she claimed particularly advantaged women, citing AIST research which found the average balances for men aged 60 years were around $210,000, compared to $95,000 for women of the same age.
Under the scheme, workers earning less than $37,000 do not pay the 15 per cent tax on their superannuation contributions because it is rebated to their funds.
For his part, Shorten described any move by the Coalition to reverse the Government's approach as a "kick in the guts" to working mums.
"The Coalition's tax hike will also discourage workforce participation, including among the 2.1 million women who benefit from the LISC," he said.
"Sadly the Coalition's destructive negativity means they would rather reduce the wealth of 3.6 million workers than take money out of the pockets of billionaires."
