Politicians trade super blows

Superannuation has re-emerged as a Federal Election issue with the Coalition poking holes in Labor’s tax policy and the Opposition lashing out at Government plans to force Australians to wait longer before they can access their super entitlements.

The Opposition spokesman on Retirement Incomes, Senator Nick Sherry says a leaked report from the Prime minister's Community Business Partnership recommends a review of the superannuation preservation age.

He says any move to increase the preservation age beyond the current cut-off at 60, will reduce choice for older Australians.

“Will the Treasurer be honest with the Australian people about his plans to increase the preservation age?” he says. “Does the Treasurer still only have one response to the ageing population: Work Until You Drop?”

Senator Sherry contrasts the Government's position with that of the Australian Labor Party which he says offers aging Australians real choice.

Meanwhile Costello has hit back at Sherry accusing the Opposition’s move to scrap the superannuation co-contribution scheme as denying low and middle-income women the opportunity to bolster their superannuation savings.

The Government further claims Labor’s tax policy is under-funded by $2.7 billion.

“It does not fund the Low Income Tax Offset which 3.5 million Australians earning less than $27,000 per year are entitle to receive,” Costello says.

Costello says this follows Labor’s admission that at least 400,000 families will be worse off on a yearly basis because of the abolition of Family Tax Benefits.

“Mr. Latham claims that the policy is “full costed, fully funded”. It is not.”