Many part-time Health Professionals will be substantially worse off in retirement as a result of recently announced superannuation changes.
New federal Treasurer Joe Hockey has confirmed the Coalition Government will move to scrap the Low Income Super Contribution (LISC) and delay the increase in super to 12%.
Unfortunately this means more than three million Australians who earn less than $37,000 a year will lose access to any tax break on their mandatory superannuation contributions.
For some people it could mean as much as $30,000 less in retirement.
Women and part time workers, including many Health Professionals, will be the worst affected from the loss of the super tax break for people on lower incomes.
Given that the average woman retires with around 43% less savings than men, this change is also going to worsen the gender gap.
At the same time, however, the Treasurer has decided not to proceed with a tax increase that would affect only about 16,000 people with superannuation assets typically over $2 million.
“This is a troubling sign that the Coalition Government’s tax policies are favouring the well-off,” said Craig McGregor, VHPA Secretary.
>> Read the Open Letter to the PM by Women in Super