Labor to cut super fees and taxes

Opposition leader Mark Latham has promised that Labor would abolish the 15 per cent tax on superannuation contributions over time. Latham described the tax as “very punishing”. Australia is one of the world's few nations to tax super while people are working rather than at retirement when money is drawn on. Latham gave no timetable for the phasing-out of the tax but said it would start with a 2 per cent reduction to 13 per cent. Both Coalition and Labor governments would have to commit to a 2-year phase-out, he said. Labor would also slash fees charged by fund managers on workers' employer super contributions, place limits on commissions paid and reduce excessive exit and entry fees to super funds.