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Abbott's unfair paid parental leave scheme: you will pay



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Campaign Media Release

Campaign Spokesperson Penny Wong

ABBOTT’S UNFAIR PAID PARENTAL LEAVE SCHEME: YOU WILL PAY

Australians will pay for Tony Abbott's unfair and unaffordable paid parental leave scheme.

Who would be hit hardest by Mr Abbott’s scheme?

 Almost one million part-pensioners would be worse off by up to $800 a year because of lower returns on their shares and interaction with the pension assets test.

 Retirees would be hit hardest through the double-tax on their retirement savings (through changes to franking credits) which would pay around one third of the scheme’s cost. This amounts to $1.6 billion every year and would cost a retiree couple with around $500,000 savings more than $1,000 every year.

 Every Australian with superannuation or Australian shares would be hit by the double-tax on their dividends.

 Charities, universities and medical research institutes, who rely increasingly on imputation credits as a revenue source, would be hit. These organisations were refunded more than $800 million in 2011-12, up by around 54 per cent from 2010-11.

 Women on low incomes would subsidise those with higher incomes, because the scheme overwhelmingly favours those with higher earnings. Women on the minimum wage would receive $35,828 less than women on $2,000 a week or more.

 Australian business would be hit by a 1.5 per cent hike in the company tax rate. This hike would mean that every Australian will pay more at the cash register, the fuel pump and for utilities.

Yet even with his raid on retirees, part-pensioners, shareholders, superannuants, charities, universities, medical research institutes, women on low incomes and

businesses, Mr Abbott has still not come clean about the full extent of his cuts.

Mr Abbott will have to make deep cuts to pay for his promises, and that means there are cuts he is hiding from Australians.

When will Mr Abbott tell Australians what else he will cut? Who else will be hit by Mr Abbott’s cuts?

SYDNEY 26 AUGUST 2013

Communications Unit: T 03 8625 5111 www.alp.org.au

Authorised by G. Wright, Australian Labor Party, 5/9 Sydney Avenue, Barton, ACT, 2600