Media Release

Rudd's great big new tax on Shire self funded retirees

Tuesday 11th May 2010

Local Federal Member for Cook, Scott Morrison said today Kevin Rudd’s great big new tax on the mining sector will hit the retirements savings of self funded retirees in the Shire hard, with billions wiped off the value of mining shares in the days following the announcement.

“Self funded retirees have had no joy from the Rudd Government during the past two and a half years,” Mr Morrison said.

“People who have worked hard to build their retirement savings have been slugged with one attack after another from Kevin Rudd. The attempt to remove health concessions and means test rebates fro private health insurance are now followed by a great big tax that will undermine the performance of their investments,” he said.

“Kevin Rudd’s decision to try and kill the goose that has laid the golden egg for the Australian economy demonstrates their lack of understanding of what makes our economy tick.

“Mining shares typically account for around 9.3% of most standard retirement investment portfolios with the major funds. There is no doubt the uncertainty created by Kevin Rudd’s great big new tax, will add uncertainty to future prosperity of these companies upon which Shire retirees depend on to maintain the standard of living they have worked hard to achieve.

“The Coalition will fight this big new tax on mining. As the local MP for Cook it will be those in our community whose livelihoods depend on the continued strength of our mining sector, namely self funded retirees, who will be foremost in my mind.

“Shire residents are paying the price for Labor’s reckless spending with this great big new tax on mining.

“There is no connection between this tax and the plans to increase superannuation savings for current employees, or to cut corporate taxes for business.

“This is just more spin from a Government addicted to spending trying to defend their big new tax to fund their record budget deficits and debt.

“Shire residents take great pride in working hard to look after themselves, their families and support others in their community. The last thing we need is the Rudd Government cutting us off at the knees with higher taxes and runaway spending,” Mr Morrison said.