This afternoon’s decision by the Reserve Bank to keep interest rates on hold is welcome but Australians with a mortgage are not out of the woods yet.
Since the last election, an Australian with a typical $750,000 mortgage is now paying around $22,000 more on their repayments.
Shadow Treasurer Angus Taylor said with the Reserve Bank expecting inflation to remain a challenge until late 2025, Australian families are facing several more months of higher mortgage repayments.
"There is little relief in sight for struggling households as long as Labor remains distracted by breaking promises and pursuing pet projects,” Mr Taylor said.
“The release of draft legislation today for increased taxes on superannuation accounts shows Anthony Albanese is doubling down on his broken promise not to change superannuation.
“This is a broken promise, plain and simple. It comes at a time when Australians are already struggling with stubborn inflation, a GDP per capita recession, sharp increases in interest rates and soaring energy prices.”
The government’s proposal has three key-flaws:
- It’s a broken promise: Before the election, Anthony Albanese explicitly ruled out changes to super.
- It isn’t indexed, meaning young Australians will pay: Analysis from Jim Chalmers’ own department has shown a 20-year-old today earning an average wage over their lifetime will pay higher taxes under this scheme.
- It taxes unrealised capital gains: Meaning retirees and superannuants will face tax bills on money they haven’t even earned yet – this will hit small business owners, farming families and self-managed super funds the hardest.
Mr Taylor said Australians save hard for their retirement and that the long-term nature of superannuation savings means confidence in the entire system is undermined when parties make ad-hoc changes and break promises.
“After spending a year distracted by the Canberra Voice, Labor’s first priority on the economy is to break promises and raise taxes rather than focus on bringing down inflation,” Mr Taylor said.
“Superannuation is Australians' money, not the government's. The Coalition wants to see more choice in how Australians can use their retirement savings. Unfortunately under Labor, super is just a honey pot to be raided.
“The Coalition will fight Labor’s broken promises on tax to the next election.
“The Coalition calls on the crossbench to stand by its commitment to integrity and hold the government to account for breaking a crystal-clear election promise.
“Australians need a government that supports aspiration, not attacks it. Australians need a government that backs employers to create jobs, not makes it harder. Australians need a government that focuses on the economy first, not distractions like the Canberra Voice.
“Only a Peter Dutton-led Coalition Government will deliver the strong economic management that will support Australian jobs, bring down inflation and fund the essential services Australians deserve.”