Mr Abbott blamed the need to remove the “mining tax” for the cuts.
“Tonight, I confirm that we won’t continue the twice-a-year supplementary allowance to people on benefits because it’s supposed to be funded from the mining tax and the mining tax isn’t raising any revenue,” he said.
“As well, we won’t continue the low income superannuation contribution because that’s also funded from the tax that isn’t raising any revenue.
“I announce that we will delay by two years the ramp-up in compulsory superannuation because this money comes largely from business – not from government – and our economy needs encouragement as mining investment starts to wane and new sources of growth are needed.”
Mr Abbott would not commit to which of Labor’s immediate Budget measures would be kept or dumped by the Coalition.
“… thanks to Labor’s poor management over five years, there is now a Budget emergency,” he said.
“Hence the Coalition may decide not to oppose any of them, doesn’t commit to reverse any of them, and reserves the option to implement all of them in government, as short-term measures to deal with the Budget emergency Labor has created.”
He said the Coalition also reserved the right to implement all of Labor’s cuts, if needed, “because it will take time to undo all the damage this government has done”.
Responding to Mr Abbott’s speech, Minister for Financial Services and Superannuation Bill Shorten said a Liberal government wouldn’t just scrap the SG increase, “they will scrap it completely”.
“Tony Abbott believes superannuation is a ‘con job’ and if he is elected prime minister, super will stay at 9.25 per cent,” Mr Shorten stated.
“Under Labor, a person aged 30 today on average full-time earnings will retire with an extra $127,000 in superannuation savings.
“Under the Liberal’s plan to delay the superannuation guarantee, that same 30 year-old will retire with $20,000 less in retirement savings,” he said.
