Young Australians Whacked with Super Tax
8 May | '2023
The Hon Angus Taylor MP
Angie Bell MP MP
Shadow Minister for Early Childhood Education
Shadow Minster for Youth
JOINT MEDIA RELEASE
YOUNG AUSTRALIANS WHACKED WITH SUPER TAX
05 May 2023
A 20-year-old today earning an average salary will be caught in the net of Labor’s doubling of superannuation taxes.
Modelling released to the Coalition under Freedom of Information on the government’s controversial superannuation tax hike confirm the changes will apply to young Australians earning average wages over their lifetimes.
According to Treasury’s own analysis, a 20-year-old who earns an average wage throughout their life will have a superannuation balance higher than $3 million in their early 60s – seeing the tax on their super double by the time they retire.
Analysis of ATO and Census Data reveals that this means more than 2 million Australians under the age of 25 today will be slugged with Labor’s latest tax grab.
Worse, the Treasury documents confirm that this is a deliberate design feature of the tax increase.
It’s no wonder the Treasurer sought to hide the modelling from the Senate.
Shadow Treasurer Angus Taylor said this is a tax on the future of young Australians in order to pay for Labor’s pet projects.
“A high proportion of the next generation of Australian workers will be hugely impacted by Labor’s extra tax take on superannuation accounts,” Mr Taylor said.
“These tax hikes, which Labor promised it wouldn’t impose, will affect a large spectrum of professions from tradies, executive assistants, teachers, nurses, police officers, accountants, journalists, public servants and physiotherapists.
“A 20-year-old today who earns an average wage over their lifetime should not pay the price for Labor’s addiction to spending. Worse, this analysis reveals that this is the deliberate design of the policy.
“The government has been misleading Australia and it is time for the Treasurer to come clean and confirm exactly how many people will lose out under these changes.”
Shadow Minister for Youth Angie Bell said Treasury’s modelling showed for the first-time young Australians will face higher taxes on their super than the generation before them.
“Young Australians are already paying the price for Labor’s inflation. This analysis confirms young Australians will be paying the price for a Labor government for decades to come,” Ms Bell said.
“This analysis shows young Australians today will pay the price of Labor’s reckless spending.”
“The idea that this policy change will only affect older Australians and the super wealthy is nothing but a Labor lie.”