3 October 2011

Seniors call to scrap super age limits and stamp duty at Tax Forum

Older Australians will call on government to scrap stamp duty and age limits on the superannuation guarantee at this week’s Tax Forum in Canberra.

Currently, employers are not required to pay superannuation towards workers aged over 69, despite an official drive to keep Australians working longer as the population ages.

National Seniors chairman and leading economist Professor Judith Sloan, who is attending the forum, said superannuation age limits were inconsistent with espoused labour market trends.

“We’re getting mixed messages,” she said. “On the issue of super guarantee age limits, it’s time for Government to put their money where their mouth is”.

“Employers are being told to value older workers, but just not to the extent that a 70-year-old is granted the same superannuation benefits afforded a 30-year-old,” she said.

“Seniors aren’t asking for special treatment, we’re asking for the same treatment”.

“To allow older workers equal access to the superannuation guarantee is consistent and fair”.

The other issue is stamp duty. This tax, which varies from state to state, acts as a disincentive for retirees downsizing to age-friendly accommodation.

“National Seniors research reveals that many older Australians are forced to sell up as the family home or garden becomes impossible to maintain,” said Professor Sloan.

“Often, those who stay, do so for financial reasons such as stamp duty”.

“Those financial pressures are compounding as more of us move into retirement with mortgages”.

“Add stamp duty to the equation and downsizing seniors are forced into city fringes or regional areas away from health facilities and social networks built over a lifetime”.

National Seniors will also raise, as a short term consideration, the flow-on effects of another prolonged global economic downturn.

For example, diminishing superannuation returns would either force Australians to delay retirement thus adding impetus to calls to improve the employment prospects of older workers; or require government to extend the 2008 drawdown concession on market-linked allocated pension funds.

For the record, National Seniors is opposed to extending the GST to unprocessed food and health services which would exacerbate cost of living pressures. However, the GST is unlikely to be discussed at the Tax Forum.

National Seniors chairman Professor Judith Sloan is available for interview

Media: Sarah Saunders 0409 055 156

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With a quarter of a million members Australia-wide, National Seniors is the consumer lobby for the over 50s. It is the fourth largest organisation of its type in the world.