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Government figures confirm baby boomers miss out in super package.



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*** MEDIA RELEASE ***

SENATOR NICK SHERRY Labor Senator for Tasmania Shadow Minister for Superannuation, Intergenerational Finance: Banking & Financial Services

Government Figures Confirm Baby Boomers Miss Out in Super Package 30 November 2006 The National Centre for Social and Economic Modelling (NATSEM) analysis that the super package will deliver zero or little benefit to baby boomers is confirmed by the Government's own projections.

NATSEM modelling reveals that the estimated average male baby boomer has only $87,000 and female $35,000 in super.

The mean is just $30,700 male and $8,000 for female.

The Government's centrepiece announcement was no Australian will have to pay exit tax on their super, however no benefit flows to the majority of baby boomers because the 15 % exit tax only cuts in at a savings levels greater than $135,000 (indexed).

The Government's own projections as detailed in "a plan to Simplify and Streamline Superannuation - detailed outline" page 61 (attached) confirms the NATSEM outcomes.

The Government's own projections show at age 45 with only Superannuation Guarantee payments a baby boomer earning less than $600 ($31,000 a year) receives zero benefit and a baby boomer earning $800 ($41,600 a year) receives just a 1.3 % increase from the abolition of the exit tax.

At age 50 or 55 the outcome would be worse but were not illustrated.

Only a small number of this income group salary sacrifice or make a co-contribution.

A majority of baby boomers will still be on the age pension.

Government modelling also assumes they all work to age 65 when the average retirement age is 60.

The poor outcome for low/middle income baby boomers highlights the stupidity of the Howard Government scrapping Labor's universal 3% employee 3% government co-contribution proposal in the May 1987 budget.

For more information contact Nick Sherry 0418 482 807

A Plan to Simplify and Streamline Superannuation Detailed Outline - Page 61