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Abbott and Palmer Party Mining Repeal Deal explained

The Abbott Government and coal-mining billionaire Clive Palmer have done a deal which will see the Palmer Party and Coalition join forces in the Senate to repeal the Mining Tax.

So what was the deal?
Repealing the Mining Tax in exchange for the Palmer Party Senators allowing the Abbott government to make a cash-grab on the retirement savings of one in three workers to the value of around $27,000 or 15% of their expected retirement savings.

This bill will deplete the retirement savings of one in every two working women and 80% of women working on a casual or part time basis.

Super Guarantee - freeze the superannuation guarantee (how much superannuation your employer must guarantee to pay to your super fund) at 9.5% for six years until 2020, then the annual 0.25% increase will continue until it reaches 12% in 2025 - six years after it was meant to kick in. [The superannuation guarantee was previously legislated to increase 0.25% annually until it reached 12% in 2019]

Low Income Super Contribution - will be abolished in 2017. This was a $500 government superannuation contribution to people who earn less than $37,000 a year.
This contribution was a recommendation of the Henry Tax Review to try and rebalance the inequality of our super system which heavily favours high-income earners (through tax breaks) and offers very little to casualised or low-income workforce (who can't reduce their marginal tax rate, and have little discretionary income.)

Income Support Bonus - will be abolished in 2016. This support payment provided a twice yearly payment for people on a government support payment.

Rather than making cruel cuts which hurt everyday Australians and our community's most vulnerable people, the Abbott Government needs to stop the free-ride to Big Mining, Big Business and Big Banks. See the Greens' plan to raise $88 billion dollars of revenue here.

 

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