Superannuation drawdown relief overdue

June 30, 2010

Self funded retirees have suffered endless uncertainty because of the Federal Labor Government’s delay in extending the draw down relief being provided for account-based superannuation pensions.
The Government announced today it will extend the drawdown relief being provided for account-based superannuation pensions during 2010-11. “Julia Gillard and Labor have created unnecessary uncertainty by waiting until a minute to midnight to make this announcement,” Mr Hartsuyker said.

“This is long overdue and should have been announced earlier to give self-funded retirees peace of mind for the upcoming financial year. Drawdown relief was made available in 2008 to assist self-funded retirees protect assets during falls in global asset prices, but the continued mismanagement of the Australian economy by the Gillard-Rudd government has required its extension.  After inheriting a $20 billion surplus, the Gillard-Rudd government has plunged Australia into record levels of debt and deficit due to their economic mismanagement.

“This is a government who has treated self-funded retirees with contempt. Labor made things worse for superannuants in 2008 by implementing their bungled bank deposit guarantee, forcing many funds to freeze the redemptions and assets of thousands of self-funded retirees.  Wayne Swan’s budget measures in 2009 to cut superannuation concessional contribution rates and the co-contribution scheme damaged the ability of Australians to save and become self-sufficient in retirement.

“And now we have Julia Gillard’s great big new tax on mining, which is causing volatility and uncertainty in the market. Over $35 billion has been wiped from superannuation investments in Australian shares since the tax appeared in the media in April. Self-funded retirees must be supported because of the substantial contribution they make to the economic security of Australia. The Coalition welcomes the extended drawdown relief because it provides self-funded retirees with added protection against the economic mismanagement of the Gillard Labor Government,” Mr Hartsuyker said.