New figures reveal huge impact of super changes

LOW-income workers in the Coalition's own electorates will be among the hardest hit by controversial changes to superannuation, experts say.

The deal with the Palmer United Party (PUP) to scrap the mining tax will see increases to superannuation delayed until 2021.

The low-income super contribution will be axed in 2017.

The changes will mean tens of thousands of dollars foregone in retirement savings for low-income earners, many of them concentrated in seats held by the Nationals and country Liberals.

The ABC reports that an analysis of the last census data by left-leaning think tank the Australia Institute indicates Nationals' electorates will bear the brunt of the changes.

Financial planner David Newberry, whose practice is in Tamworth, estimates at least 20 per cent of his clients will be affected.

"I think it hits regional areas because it hits low-income earners, which happen to live in regional areas because [they] can't live or afford to live in the metropolitan areas," he said.

The electorate predicted to be the hardest hit is Cowper, which is held by Assistant Employment Minister Luke Hartsuyker, a Nationals MP.

The analysis suggests more than 46 per cent of all people employed in his New South Wales north coast seat will lose the low-income super contribution.

An analysis by Industry Super Australia (ISA) shows that almost all ages and income brackets will have their retirement savings affected, with some demographics set to lose tens of thousands of dollars.

 ISA Chief Executive David Whiteley warned yesterday the social contract between Australians and their Government that underwrites the superannuation system was at risk of fraying.

"The Government's decision to leave Australian workers worse off at retirement and make our superannuation system a plaything of successive Treasurers will erode confidence in our system."

"It will mean less investment in productivity enhancing and nation building infrastructure, more pressure on future federal budgets due to increased reliance on the pension and the creation of a two tier super system, with inequitable access to tax concessions depending on income."

"ISA has consistently sought a bi-partisan approach from policy makers on retirement incomes policy.

"The scrapping of the LISC is plainly unfair. Over three million workers - two million of whom are women - will lose $500 per annum as a result of this change.



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