SHY confuses superannuation regime and Greens policy

Been watching too much Sea Patrol ?

Election 2016: Sarah Hanson-Young confuses superannuation regime and Greens policy

By political reporter Dan Conifer
Posted 43 minutes agoWed 1 Jun 2016, 10:14am
Photo: Ms Hanson-Young also mixed up whether her party's policy applied to contributions or earnings. (ABC News: Nick Haggarty)
Related Story: Claims Coalition's super changes will only affect the rich 'simply incorrect'
Related Story: Turnbull defends Bishop over on-air super stumble

Map: Australia
Greens senator Sarah Hanson-Young has given a gaffe-filled interview about superannuation, where she proposed a radical change in the system and appeared not to understand Australia's superannuation regime or her party's policy.
During an interview on 891 ABC Adelaide, she said earnings within superannuation funds should be taxed at a person's marginal income tax rate.
"In order to make it fair you should be paying the same tax rate on income as you do for what you're earning on your super, why not? Why shouldn't it be the same?" Senator Hanson-Young said.
"If you're earning more, then you should pay the tax rate that you're paying on your income."
Superannuation



Coalition

Increase tax on contributions from 15-30 per cent for people earning more than $250,000. Super balances over $1.6 million to be taxed at 15 per cent, and a $500,000 lifetime cap on after-tax contributions.
Labor

Increase tax on contributions from 15-30 per cent for people earning more than $250,000. Tax superannuation earnings above $75,000 per annum at 15 per cent.
Greens

A sliding scale of tax on superannation based on income starting at 0 cents in the dollar for those earning less than $19,401 increasing to 32 cents for those on $180,001 onwards.
More policies


Such a move would be a seismic shift — earnings within the fund are currently taxed at a maximum of 15 per cent, except for retirees in the pension phase where earnings are not taxed.
Even if Senator Hanson-Young was talking about contributions, she still got it wrong.
The Greens official superannuation policy would only see the tax rate on contributions rise for people on incomes above $100,000 a year, but would still be below their marginal income tax rate.
Trying to clarify later in the interview, Senator Hanson-Young also mixed up whether her party's policy applied to contributions or earnings.
"I was trying to explain that we needed to have a progression, and a progressive taxation system," she said in a second interview.
"I should have been clearer; it's a difficult area of course.
"We saw the Deputy Leader of the Liberal Party not be able to explain their position yesterday."
Julie Bishop stumbled when pressed on details of the Coalition's superannuation policy.
When Radio 3AW host Neil Mitchell asked Ms Bishop to explain the transition to retirement scheme, she responded: "Well I am certainly aware that we have one, yeah."
"Well Neil, this is obviously a gotcha moment, it's not my portfolio," the Foreign Minister added.
The Government's budget changes would mean people using the transition to retirement scheme would be taxed at 15 per cent, opposed to the current situation where the earnings on their account are tax-free.

http://www.abc.net.au/news/2016-06-...g-confuses-super-regime,-party-policy/7466528