Labor’s superannuation dividend tax plan could be one of the deciding factors in who wins the federal seat of Menzies.
The electorate has more than 9,000 residents over the age of sixty-five, and Labor’s proposal, announced early last year, was to return the divided imputation system to where it had been before then Prime Minister John Howard changed it in 2001.
Labor is allowing expectations for tax-exempt bodies such as charities and universities. They would continue to receive imputation cheques alongside dividends.
Labor Candidate for Menzies, Stella Yee says the current system benefits the wealthy and the money could be better used in other areas.
Liberal’s reply to the proposed tax plan has been strong with Federal MP for Menzies Kevin Andrews taking the lead in the campaign against Labor’s policy change.
The MP says it will have a detrimental effect on retirees.
A few weeks after Labor announced the plan, they revised their policy by adding a pensioner guarantee. Pension and allowance recipients, even part-pensioners, would be excused from the alterations and would still continue to receive cash payments.
Labor wants to have pensioners onboard as the pensioner guarantee will protect pensioners who may otherwise be affected by this reform.
This issue has divided in this campaign and with a high proportion of aged people in Menzies this one small seemingly technical change may well decide who wins this outer Melbourne seat.
Written by James Cusack and Cormac Pearson
