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EYE-BALL’s Harry’s Growl on – Election 2013 – Growl No: 32 – Senator Wong gets the wobbles – steps up and proves she’s in over her head –

April 7, 2013
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– 6th Apr – Election 2013 – Growl No: 31 – Playing with Rubbery things – Wayne Swan and his Rubbery Numbers are about as honest as Gillard and her rubbery Caucus Numbers –


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Title:
– Election 2013  – Growl No: 32 –
– Senator Wong gets the wobbles –
– steps up and proves she’s in over her head –
| Author: EYE-BALL’s Harry’s Growl | 7th Apr 2013|
Latest Pickering images – 3 New Cartoons added 4th Apr 2013 – see image links to the left.


Senator Penny Wong, Finance Minister, weighed in on the Superannuation debate with her ‘wrecking-ball’ analogy but forgot to do her homework.

Swan and Shorten went to great lengths to tell us all that the new superannuation rules covering a 15% tax on Super Fund incomes of $100k or more will only impact 16,000 odd superannuants.

They also told us that it would create revenue of $900,000,000 over the next four (4) years.  Really this is just so simple … does that mean the 15% tax on super incomes over $100k will generate $900 million over the next four (4) years – which then translates to also mean that these 16,000 wealthy super fund owners will be the ones paying this $900 million.

How is that not unlike the ‘Cyprus’ bailout where wealthy depositors had their savings taxed to provide €10 billion to cover the Cyprus Governments part of the Euro bailout package?

In Australia’s ‘Cyprus’ like tax – as Abbott referred to – the Government is targeting wealthy Australians who have used the legal rules to create superannuation wealth, and now the Government wants to change the rules and apply a new tax on these wealthy funds.

To be precise in what Senator Wong said – the story has been reported as pasted below:

Wong condemns ‘wrecking ball’ Abbott


| Date: Apr 7th, 2013 | Link to On-Line Story. |

Finance Minister Penny Wong has labelled Opposition Leader Tony Abbott a “one-man wrecking ball” for comparing the government’s superannuation changes with the crisis in Cyprus.

Senator Wong joined Prime Minister Julia Gillard in attacking Mr Abbott over comments he made last week, when he said “every time a government raids people’s funds, there are shades of Cyprus about it”.

On Friday, the government announced a series of superannuation reforms including a 15 per cent tax on superannuation earnings over $100,000, a measure it says will affect only 16,000 high-income earners.

Senator Wong said Mr Abbott “behaves as a one-man wrecking ball”.

“This is a man who wants to be the prime minister of the country, making economically reckless statements,” she told Sky News on Sunday morning.

“For all my criticisms of (John) Howard and (Peter) Costello, can you imagine John Howard trying to damage confidence in the economy and in superannuation to make a political point?”

Speaking from a business forum in China, Ms Gillard said the opposition leader was an “economic simpleton”, and the comments “a crazy statement that no person of reason could make”.

The government’s superannuation measures will save more than $10 billion over the next decade, when combined with an already announced increase to the contributions tax rate for those earning more than $300,000.

As part of the changes, concessional contributions caps will also be increased for the over 60s from $25,000 to $35,000.

Asked if she could rule out any further changes to superannuation, Senator Wong said: “I can tell you what our policy is and our policy is the one announced.”

Senator Wong also wouldn’t say whether she had pushed for bigger changes to superannuation, only to lose the argument in cabinet.

“I won’t go into that – I’m certainly never going to be one of the people that discuss what might or might not have been said in cabinet,” she said.

“It is a balanced package that does what we wanted it to do, which is look to the long term to ensure that we made the system of concessions more sustainable and we continue to build the retirement incomes of Australians, particularly low-income Australians.”

Greens leader Christine Milne told Sky News she thought the government “did lose its nerve” on super reform.

She said she supported taxing super earnings over $100,000.

But because the government has said it cannot legislate the changes before the September election, Senator Milne said the policy was “merely an election promise from Labor that they’ve factored into the budget”.

Health Minister Tanya Plibersek said the opposition was taking a “cheap shot” at a complicated issue.

“If you have $20 million in super, you don’t need extra help from the government to keep saving,” she told Network Ten.

She denied the super changes had been rushed through the cabinet process.

“Yes, there was a discussion … it was canvassed at great length and great detail,” Ms Plibersek said.

She took a swipe at former cabinet minister Simon Crean who, during the speculation before the announcement, pledged to oppose any move to tax earnings on super accounts and to make the changes retrospective.

“I think it was extremely unfortunate that Simon made the comments that he did,” she said.

“It was strange that Simon whipped up the fear that he did.”

Mr Crean has since given his blessing to the super changes announced on Friday.

Ms Plibersek described the changes as modest and fair.

Former Labor superannuation minister Nick Sherry, who left politics last year, said the new Council of Superannuation Custodians would have to consider setting out long-term sustainable rules that could be adopted over time.

“It may be unpopular for me to say this … but given the age pension is accessed at 65, moving to 67 it’s means tested, accessing super as a lump sum at age 60 in my view is unsustainable,” he said.

© 2013 AAP

I particularly mused over Senator Wong’s distaste for the ‘Cyprus’ comparison.

By what measure is the $900,000,000 not a tax on the wealthy?

Swan and Shorten estimated the amendments would generate $10 billion over the next 10 year forward estimates.   That is some serious numbers – but in 2010 the Gillard Government gave an iron clad guarantee that the forward estimates proved a budget surplus for 2013-14.  You would just not trust anything this Government said or maintained when it came to budget estimates and spending cuts.

To turn the $900 million over four years into $10 billion over 10 years – what are they hoping for … bracket creep …

That would then require some research to see how many people sit just below the $100k income on super level’s now.  That might make the 16,000 look a little suspect – maybe the real number might become 100,000’s in 3-4 years …

You just can’t trust any politician anymore with your money.

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