Labor’s robbing pensioners to pay for foreign aid boost

Labor’s plan to increase the foreign aid budget comes at a cost to pensioners, who are being robbed of franking credit refunds.

Federal Member for Hinkler Keith Pitt and Federal Member for Flynn Ken O’Dowd said thousands of retirees would be affected by Labor’s proposed tax grab.

“Over 5,600 retirees in Hinkler who rely on franking credit refunds as part of their income will be robbed,” Mr Pitt said.

“While Australia has an important part to play with helping neighbouring nations and regional security, Labor has not properly accounted for this very expensive promise to increase foreign aid.

“Their plan would cost between $68 and $82 billion over the next decade depending on the rate of implementation, and just where is this money coming from? It’s coming from the hard-working retirees who have saved and planned for their retirement, but Bill Shorten doesn’t care about that – he just want to take, take, take.

“On average individuals would lose $2,200 a year, but for many it will be much higher. These retirees rely on this income and factor it into their budgets,” Mr Pitt said.

Federal Member for Flynn Ken O’Dowd said Bill Shorten’s $387 billion in extra taxes would risk the future economic security of local retirees.

“We’ve got over 5,000 retirees in Flynn who are going to cop it tough because of Labor’s cash grab,” Mr O’Dowd said.

“These are people who’ve worked hard all their lives and invested in their future, banking on the returns they receive through franking credits.

“One Flynn constituent claims he and his wife will lose $250,000 over ten years and has the figures to prove his calculations.

“Their household budgets are worked out based on this income – when bills can be paid, groceries bought, vehicles registered and rates paid. These are not luxury items, and it is wrong for Labor to pinch this planned income from them.

“On top of that a Shorten Labor Government will hit retirees with four new superannuation taxes totalling $34 billion, and their $31 billion housing tax is going to abolish negative gearing as we know it and increase capital gains tax by 50 per cent.

“This is a massive hit on the hip pockets of our retirees, with all that money redirected to Labor’s pet causes such as increasing foreign aid and taking in more refugees.

“Labor hasn’t delivered a Budget surplus since 1989 and now is not the time to go back to their discredited ways of the past.”