Removal of LISC to hit over two million women

Women will be among the hardest hit by the Coalition’s plans to abolish the Low Income Superannuation Contribution (LISC), according to the Minister for Financial Services and Superannuation, Bill Shorten.

Shorten said new figures had revealed that shop assistants, waiters, bartenders and cleaners would be among the worst off following the Coalition’s proposed removal of the $500-a-year Government super top-up for low income earners.

The LISC affects 3.6 million Australians who earn below the threshold of $37,000 a year, Shorten said.

Data from 2010-11 showed that 2.2 million – or 60 per cent – of the low income earners who would be affected were women.

“We know that deep down Tony Abbott believes superannuation is a ‘con job’, but this is a cutback of around $4 billion that will particularly affect women,” said Shorten.

“Women are already retiring with less because of the disparity in their pay compared to men, as well as the time they take out of the workforce to raise their children.”

An Australian Institute of Superannuation Trustees (AIST) poll released last month showed two thirds of Australians supported the LISC. 

Women in Super’s pre-Budget submission backed the LISC as crucial to the retirement savings of approximately two million women.