Impact Labor's 'retiree tax' would have on Flynn revealed
THOUSANDS of self-funded retirees in the Flynn electorate would be up to $2700 poorer per year under Labor's proposed new tax, Member for Flynn Ken O'Dowd has warned.
Despite backlash from the Opposition and some seniors' groups, Labor has not backed down on its plan to axe cash refunds for franking credits.
The 5092 Flynn retirees who benefit from cash refunds claim an average of $2700 per year.
An analysis by The Australian of cash refunds made by retirees in the nation's 10 most marginal seats ranked Flynn as the electorate with the highest amount claimed, with Capricornia coming in second at an average of $2335.
"This is a disgraceful cash-grab by Labor from those who have done the right thing, grown their nest egg and planned to provide for their own retirement," Mr O'Dowd said.
"When thousands of our retirees have less household income, it means less money spent in local shops and extra pressure on employers being able to hang on to local jobs."
There are concerns self-funded retirees would invest their money overseas or move to the pension if the policy was to be implemented.
Speaking to media in Brisbane last week, Opposition Leader Bill Shorten said it was appropriate to shut down unsustainable tax concessions.
"Why are we the only country in the world who will let people claim an income tax refund when they've paid no income tax in that year," he said.
"It's generous but it's not sustainable."
Mr Shorten described the impacted retirees as people who were already "quite comfortable" and "well-off".
It is estimated the policy would boost Federal Government coffers by $55.7billion, which Mr Shorten said would be spent on health and education services.
It is believed the policy would affect up to 50,000 voters across the nation's 10 most marginal seats.
Queensland has one of the biggest proportions of self-funded retirees in the country.