Bill Shorten promises pensioners will get money back from $59 billion tax take
Opposition Leader Bill Shorten has come under fire in recent weeks, accused by the Coalition, retirees and pensioners of threatening their financial future with a “brutal and cruel” plan which would see $59 billion in refundable tax credits on share dividends scrapped.
If Labor is voted in at next year’s election, the policy would see pensioners forced to restructure their investments and move away from shares to pension payments, the Sydney Morning Herald reports.
Yesterday, Prime Minister Malcolm Turnbull accused Shorten of launching an attack on lower and middle-income earners, claiming the “Labor cash grab” would hit over 3.5 million super accounts and affect more than one million Australians.
However, Shorten has jumped on the defensive, claiming the 10 per cent of pensioners on the lowest annual incomes would be compensated for any money lost due to the $59 billion budget boost.
“For a person on the part pension they may get some taxpayer funded supplement to their shares,” he said. “What we’re proposing is if they’re not getting some extra taxpayer funded bonus for income tax they haven’t paid, their part pension will increase.
“We will make sure that pensioners are OK, full stop.”
One in 10 Australian pensioners would be affected by the change, Shorten said, telling Channel Nine, “They are going to have a marginal change and their part pension goes up as a result.”
It comes after National Seniors Australia CEO Ian Henschke urged Labor to “reconsider the full effect of this policy,” citing research that showed part-pensioners would be over $900 worse off after the rebates are removed, The Australian reports.
What do you think about Bill Shorten's promise that Aussie pensioners will be compensated after the $59 billion tax take? Share you thoughts with us in the comments below.