Retirees' super savings 'not going to be raided': Abbott
Retirees' superannuation savings "are safe" with the current Government, Prime Minister, Tony Abbott, claims.
The Prime Minister told retirees that the Government was "not going to be raiding their piggy banks", after being asked if he agreed with the advice of the secretary of the Treasury, who said "any government that doesn't have a process of review of their longer term commitments¬ is letting the community down", by opposition leader, Bill Shorten.
"We are not going to be raiding their savings," Abbott said.
"The savings of the people of Australia are safe with this Government, unlike the situation when members opposite were in charge."
Meanwhile, Minister for Social Services, Scott Morrison, accused the opposition of failing to understand the rationale behind superannuation, in response to questioning from Jenny Macklin on Monday.
"I will try to make this simple. This is how it works: there are tax concessions started under those opposite that are rightly granted by the Government so people can save for their retirement," he said.
"They earned that money and they do not pay as much tax on that money so they can put it into superannuation and draw down on it in their retirement.
"The reason those tax concessions are important is that people do not have to draw down on a pension. That is a fairly straightforward proposition which those on this side of the House understand.
"All we are doing is ensuring we have a pension that is there to help those most in need¬ I note that the member for McMahon [the shadow Treasurer, Chris Bowen] has equated the tax concessions for compulsory superannuation contributions with a pension welfare payment.
"There would have been antique clocks smashing all over Woollahara when the form Treasurer and former Prime Minister, Paul Keating, found out that his heir apparent over there, the member for McMahon, thought that the tax concessions that he put in place to ensure that people could save for their retirement were some form of welfare payment."
AUTHOR
Nicholas O'Donoghue
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