The Abbott Government has begun its attack on ordinary workers by drafting laws that cut taxes for big mining companies but scrap programs, including the Low Income Superannuation Contribution, that benefit low and middle-income workers.
The draft of the Minerals Resource Rent Tax Repeal and Other Measures Bill 2013 released yesterday will hurt millions of workers now and in retirement, the ACTU said.
ACTU President Ged Kearney said the Abbott Government had shown its true agenda by scrapping a range of measures that supported workers and their families.
“This bill abolishes the Low Income Superannuation Contribution, which reduces tax on superannuation contributions from workers on less than $37,000 per year,” Ms Kearney said.
“This is an effective tax increase on 3.6 million workers, including 2.1 million women. It means that these workers will be paying more tax on their superannuation than on their take home pay and will have less money in retirement.”
“This is class war of the worst kind – an attack on ordinary workers’ ability to have a decent retirement.”
“It is unbelievable that the Abbott Government intends to slug these workers while reducing taxes on mining companies.”
“The mining industry sends 80 percent of its profits offshore and the Minerals and Resources Rent Tax was an attempt to ensure that Australians got a fairer share of the profits generated from their mineral wealth.”
“The bill also scraps the Schoolkids Bonus which helped millions of families with the cost of sending children to school.”
“It also stops the Income Support Bonus, which will hurt people on a range of income support programs, including Newstart and Parenting Payments, which are already too low.
“Small business are also hit – the bill scraps the ‘loss carry back’ provisions that were designed to help small and medium businesses deal with economic downturns. This was a measure recommended by the Business Tax Working Group which included the ACTU as a member.”
“These measures show that the new government will always side with big business at the expense of workers and their families.”