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ACTU continues on path of double dipping madness



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Richard Alston

I t f f i

SHADOW MINISTER FOR SOCIAL SECURITY, CHILD CARE AND RETIREMENT INCOMES

NEWS RELEASE ACTU CONTINUES ON PATH OF DOUBLE DIPPING

MADNESS

Iain Rose's speech to The Conference of Major Superannuation Funds clearly demonstrates the ACTU's continued determination to undermine the basic purpose of superannuation by ignoring double dipping whereby superannuation fund members gain early

r ~cess to superannuation entitlements, consume them and subsequently qualify for the age pension.

Superannuation should provide adequate, retirement income and should not serve as a means of financing early retirement.

The ACTU threatens to continue to undermine reform in this critical area, as indicated by Mr Ross's comment;

"We are also opposed to the proposal to raise the

preservation age from 55 to 60."

As if this was not irresponsible enough, the ACTU is now

proposing to accentuate the double dipping problem by its proposed use of superannuation for housing.

By allowing members of superannuation funds to transfer superannuation entitlements to housing without regular repayment-of the borrowed entitlements plus interest as under Fightbackl, then borrowers would have to effectively start

again and the fund would then take time to build up without the benefits of compounding interest.

The inevitable end result will be another double dipping scheme which will enable as many people to qualify for the age pension.

The Government should ignore the ACTU's dilapidating

retirement policies and "bite the bullet" as the Coalition has by raising the preservation age to 60 and capping lump sums.

For Further Information Contact»

Senator Richard Alston on (03) 8905177 COYARC:A!WAA..TK I PARLb-'ur...·.·.···. , vY' UDRARY I ίνΑΑΛΗ |

18 March 1992