Prime Minister Malcolm Turnbull has rounded on an Opposition plan to change the way many self-funded retirees have geared their superannuation portfolios.
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In Port Macquarie on Wednesday, Mr Turnbull met with 12 self-funded retirees for a roundtable discussion.
The Prime Minister called Opposition leader Bill Shorten's proposal as a 'tax attack' that will be 'overwhelmingly born by lower and middle-to lower retirees’.
"Some 230,000 pensioners will be hit by this (proposal)," he told the group.
"It is now part of something like $200 million of additional taxes he (Mr Shorten) is proposing.
"This change would mean that 97 per cent of people will be worse off, if they are currently on less than $87,000 per year.
"Plainly someone with a large portfolio, with income through rents and interest, unfranked dividends, they are going to offset their franking credits against their tax liability.
"This is really targeted at lower and lower to middle income Australians.
It is a shocking attack on people who have worked hard all their lives and who have done the right thing by putting money into their superannuation.
- Malcolm Turnbull
"It is a shocking attack on people who have worked hard all their lives and who have done the right thing and saved by putting money into their superannuation."
The Opposition plan would see a winding back of dividend inputation credits, which would still see self-funded retirees able to reduce their tax to zero, but not go into negative.
Currently, some retirees are able to gear their portfolio which sees the government pay them for owning shares, particularly those who are low incomes but are rich in liquid assets.
The original plan was introduced by Paul Keating and later changed in 2000 by the Howard government of the day.
Mr Turnbull said the dividend inputation would still apply to 'people with big portfolios and companies'.
"Bill Shorten wants to take that away from you," he added.
The Prime Minister said the proposal would be a very significant cut to peoples' income, particularly at a time when they have made (retirement) plans.
He said the plan will affect many, many Australians.