Addressing the FSC annual conference for the sixth time yesterday, Mr Bowen castigated the government’s “obsession with removing the only tax concession that low-income earners receive for saving through super”, describing the LISC repeal move as evidence of a “prejudice against people on low incomes”.
“There is a blaring contradiction that lies at the heart of the Abbott government’s first Budget,” the shadow treasurer and former financial services minister Chris Bowen.
“On the one hand the Treasurer tells us we must work longer – longer than anywhere in the OECD – and with less support from the government in the form of the Age Pension.
“But at the same time a series of government actions are going to make it harder for Australians to save, with less incentive for them to put aside current earnings to fund their own retirements.”
Mr Bowen pointed to a recent ME Bank report which showed that 54 per cent pf households are “unable to save each month”, adding that the scrapping of the LISC would be a “retrograde step” that would further dis-incentivise saving by lower income Australians.
The opposition front-bencher also paid homage to outgoing FSC chief executive John Brogden and indulged in a thinly-veiled swipe at Assistant Treasurer Mathias Cormann, who was unable to attend the conference due to Cabinet commitments.
“I give you this pledge – if we do win the next federal election, I’ll be back to speak to you again as Treasurer,” he said. “I don’t see the FSC as an organization to be duchessed in opposition and ignored in government – I’ll not only speak to you, but will continue to consult with you, because the FSC has an important voice to bring to the debate and discussions on our economy.”
