FOR someone on the median income in Mallee to deposit $3 million into their super account, they’d need to work for 826 years.
No, that isn’t a typo.
In a federal electorate where, as of the 2021 Census, the median income earner pulled in $662 a week, it would take only 43,160 compulsory contributions of 10.5 per cent to hit the milestone.
Absurd, right?
The Federal Government reducing a tax break for people with super balances above $3 million is of no mind to pretty much everyone in Mildura, Irymple, Merbein, Red Cliffs, Swan Hill, Horsham, Maryborough and everywhere in between.
Yet we have the elected representative for these communities trying to tell us we should be furious.
“This whole saga … undermines the superannuation system,” Member for Mallee Anne Webster thundered.
“Even for those unaffected by the changes right now, it creates uncertainty, as they wonder what will come next from this government.
“It is the same old Labor – they believe they can spend your money better than you can.”
Your money.
That’s right, by taxing multi-millionaires at 30 per cent rather than 15 per cent, they are spending your money from, ah, um, give or take 826 years from now.
Granted, with the wonders of compound interest, it’s not entirely impossible for a run-of-the-mill Mallee worker to hit it big during their first lifetime, provided they work for about 60 consecutive years – though six decades of inflation might take the shine off.
But once we bring compound interest in, it needs to apply to those with balances beyond $3 million, too.
If the holder of such an account has an 8 per cent return in a year, even if they don’t work or make any new contributions for the entire 12 months, suddenly they have an extra $240,000.
Of course, giving $72,000 rather than $36,000 back to the tax office isn’t anyone’s idea of fun.
But this isn’t about class warfare. Our society already largely accepts different tax rates for regular income (going way beyond 30 per cent, in fact).
It also doesn’t need to be partisan. None other than the Coalition’s own would-be treasurer, Angus Taylor, supported the idea seven years ago.
And when the biggest arguments Dr Webster can muster are that it’s a “broken promise” (despite it being taken to an election before rolling out in 2026) or that it might lead to other scary things, you can tell she’s out of ideas explaining what’s actually wrong with it.
Unfortunately, in Opposition Dr Webster seemingly only knows one mode – attack Labor – no matter the topic.
It was on show again this week when she declined an offer for a government MP to attend her Mildura health summit.
If the idea was to achieve real change, why weren’t the government in the room?
Why introduce partisanship to an endeavour – seeking better health-care outcomes – where it blatantly isn’t needed?
As for super, that $662 a week figure is a median – plenty of our neighbours get well less than that.
On household income, only six electorates had smaller incomes than Mallee. There were 144 pulling in more money.
So just who is Dr Webster representing when she talks about your money?
The reality is that the majority of her constituents can’t even dream of the day when $3 million in their super account is something that “undermines” them.
While she of course should be representing all her constituents, wealthy and disadvantaged, reflecting the reality of Mallee matters.
Dr Webster is free to stand for election in Bondi or Toorak if she wants to be an all-out representative of the affluent.
But for now, she has been elected to be Member for Mallee, not the Member for Talking Points, not the Member for Extreme Partisanship and not the Member for Multi-millionaires.
