The Greens have called on the government to strengthen their proposed superannuation plan to meaningfully address wealth inequality and fund measures to address the cost of living crisis by preventing people from accessing any superannuation tax concessions above $1.9m, the current level of the transfer balance cap originally set by then Treasurer Scott Morrison.
Costings by the PBO show that the Greens’ plan would raise $54.6 billion over the next decade, which could be a down payment on raising income support above the poverty line or pay for an immediate doubling of Commonwealth Rent Assistance.
Senator Nick McKim, Greens Economic Justice Spokesperson said:
“Labor’s minimalistic plan is not enough to curb wealth inequality, especially if they do not ditch the Stage 3 tax cuts.
“Fiddling at the margins on superannuation tax concessions while proceeding with Stage 3 tax cuts is just a money-go-round scheme for the rich.
“Labor is basically proposing to rob Peter to pay Peter.
“The transfer balance cap – introduced by Scott Morrison – makes it clear that people do not need public handouts once they have $1.9m in superannuation.
“The Greens want Labor to eliminate all superannuation tax concessions above $1.9m.
“If Labor gets real about tackling inequality, we can raise serious money to help address the cost of living crisis, like ending handouts to the top 1% to fund an increase in income support or doubling rent assistance.
“Our plan would only affect the top 1%, but it would start earlier, and tax twice as many people twice as hard as Labor’s.
“Instead of waiting until 2025, our proposal would take effect from 1 July this year.
“We also urge Labor to direct revenue from curbing these concessions towards helping those who need it most.
Senator Janet Rice, Greens spokesperson for Community affairs said:
“People with more than $1.9m of superannuation don’t also need massive tax breaks. People are doing it really tough and we need to make sure government help is going to the people who need it most.
“There are more people sleeping rough every night in this country than there are people impacted by Labor’s super plan. This money could be a down payment on increasing social security payments above the poverty line.”