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Super changes 'far reaching'



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■PRE 5S RELEASE > * 7 bnaaow Minister

Security

THE SENATE

1^/83 SUPER CHANGES ’FAR REACHING'

Recent changes to the taxation arrangements relating to

superannuation payments would have a far-reaching effect upon

the community, it was claimed this w e e k .

Senator Tony Messner, the Shadow Minister for. Social Security,

said that Australians should not be fooled into believing

that the changes would only affect the wealthy - or so-called

"tall poppies" - within the community.

(The changes mean that lump sum payments will now be taxed

at a rate of 30%'- an increase of 25% - unless they are

invested in annuities.)

"These changes will mean that public servants, the self-

employed, small business people, unionists and others conr

tributing to superannuation schemes will be worse off if

they receive a lump sum payment upon their retirement in

future."

j'We are not talking about pay outs of hundreds of thousands

of dollars for these people, but sums averaging out in the

tens of thousands." '

"Often, these people use the money they receive to pay out

mortgages on their homes or to make necessary repairs to

their houses in preparation for their retirments."

"In future, they will have less money to put to these tasks."

Senator Messner suggested in the Senate recently that lump

sums used to pay out mortgages should be exempt from t a x .

"In addition, the new changes also amount to the imposition

of a death tax upon payments received by dependents of members

of superannuation funds who have died."

. . ./2

Senator Messner said that the Treasurer had confirmed that

money received in those circumstances would be subject to

the new tax arrangements.

"The Government is attempting to sneak through the introduction

of death taxes or inheritance taxes without fully explianing

the situation to the Australian community."

ADELAIDE 3 JUNE 1983