Labor Party reformers seek commitments from presidential hopefuls

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News Update2Labor Party reform groups are asking the five candidates for ALP National President to support substantial changes to party rules in order make Labor more open, democratic and responsive to its members.

Local Labor and Open Labor have sent a questionnaire to the candidates – Mark Butler, Jane Garrett, Tim Hammond, Henry Pinskier and Louise Pratt – seeking their views on party reform.

The questionnaire asks candidates for their views on giving Labor members and supporters more say in pre-selections for Parliament, on changes to the relationship between the party and affiliated unions, on secret ballots in party votes and on an ethical charter for Labor MPs and office holders.

Local Labor and Open Labor will publish the questions and responses on their websites during the period of postal voting, which runs from May 11 until June 12.

The new President will chair Labor’s July National Conference, which leader Bill Shorten has promised will be a conference of big ideas and reforms to Labor’s rules and structures.

Local Labor National Convenor, Stuart Whitman, said that implementing the 2010 ALP National Review recommendations to create a more democratic party were vital to strengthening the participation of Labor members and branches in the party.

“A well-run party with members who are engaged and respected by the leadership will give Labor the best chance to get elected and implement policies for a fair and progressive Australia,” Stuart said.

Open Labor spokesman Tom Bentley said the party’s National President can play a critical role in pushing the party to be more open and accountable to its members.

“With an important National Conference just months away, the President has a great opportunity to be a leader in party reform. Let’s elect someone who wants to use it.”

For more information regarding the candidates participating in the ALP national presidential ballot, please visit www.alp.org.au/national_president_ballot

Federal Labor plans for ‘fair and sustainable’ superannuation

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moneyLabor has announced it will make two key changes to Australia’s retirement savings system to ensure it is ‘fair and sustainable’ into the future.

To improve the fairness and sustainability of the existing superannuation system, Labor plans to:

  • Ensure earnings of more than $75,000 during the retirement phase are taxed at a concessional rate of 15 per cent instead of being tax free; and
  • Lower the threshold for the 15 per cent High Income Superannuation Charge from $300,000 to $250,000 to better align tax concessions.

Saving $14.3 billion over 10 years, Federal Labor believes that the changes are responsible and are fair.

“A fair and sustainable superannuation system will protect living standards in retirement and take pressure off the age pension”, Opposition Mr Bill Shorten claimed during the recent launch of Labor’s new policy.

Recently, the Financial System Inquiry found that 10 per cent of Australians currently receive 38 per cent of all superannuation tax concessions.

In particular, Labor is concerned that the tax-free status of all superannuation earnings, introduced by the Howard Government in 2006, disproportionately benefits high income earners and is unsustainable.

“Labor will bring fairness back into the system by ensuring earnings over $75,000 are taxed at a concessional rate of 15 per cent in the retirement phase, instead of being tax free”, Mr Shorten said.

“This measure will affect approximately 60,000 account holders with superannuation balances in excess of $1.5 million and save around $9.2 billion over 10 years”.

Importantly, Labor has stated that their plan will not impact pensioners or part pensioners.

Labor also plans to remove the 10 per cent tax offset for defined benefit income above $75,000, estimated to effect approximately 9,500 account holders.

“In addition, Labor will lower the threshold on the High Income Superannuation Charge from $300,000 to $250,000 a year”.

“This measure will better align tax concessions received by those on very high incomes with those on average incomes and will save an estimated $5.1 billion over 10 years”, Mr Shorten said.

Instead of a 30 per cent tax concession, under Labor’s plan, those earning more than $250,000 a year will receive a 15 per cent tax concession on contributions.

“We believe these changes are all that are needed to ensure sustainability at the very top end of our superannuation system”, Mr Shorten said.

“If we are elected these are the final and the only changes Labor will make to the tax treatment of superannuation”.

“Obviously we want to see what more we can do to close the gender gap in retirement savings”.

Labor believed that with their planned crackdown on multinational tax minimisation, the changes will return more than $20 billion to the Budget over the decade.

“This demonstrates how Labor will responsibly manage the Budget and the economy without stifling economic growth or cutting billions of dollars from pensions, health and education like the Liberals want to do”, Mr Shorten claimed.

Labor has stated that its plan has been fully costed by the independent Parliamentary Budget Office.

For more information, visit http://www.alp.org.au/fairer_super_plan