MEDIA RELEASE

Messy Tax Bill hurts low income savers

Poor process produces the wrong Bill and taxes low income savers

For Immediate Release

Thursday, June 01, 2000

The clear message to the Finance and Expenditure Select Committee, from every submitter, is that the new Superannuation Scheme withdrawal tax is shoddy legislation to patch up the holes in the pre-Christmas tax-hike..

"This complex tax bill will hurt low income savers. It is a real disincentive to superannuation saving by anyone who earns less than $60,000 because it taxes them at the highest rate if they withdraw money from the scheme The submitters understand this, so why can't Michael Cullen work it out?"

Annabel Young was commenting on the Taxation (FBT, SSCWT and Remedial Matters) Bill 2000 which is currently before the Finance and Expenditure Select Committee.

"Because of their rush, Labour/Alliance are amending the wrong bill. They have produced a complex change to the Tax Act when they should have made a simple change to the Superannuation Schemes Act if they want to tighten the superannuation rules," says to National List MP, Annabel Young. Annabel Young blames the bad bill on the hasty way it was rushed in to the House.

"If the Minister had followed the usual consultative process, he would have been warned. But Cullen just rushed in without consulting anyone on the detailed provisions."

For further information contact:

Annabel M Young MP Parliament: Phone (04)471 9427 Fax (04)472 4169 Mobile: 021 663 065

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