Tom Elliott has taken the Australian Council of Social Service to task over a “dumb” plan to tax retirees to help fund aged care.

Under the proposal, retirees would face a 15 per cent tax on their superannuation earnings.

This money would be used to fund affordable aged-care services.

Tom Elliott said it was counterproductive.

“By all means, fund aged care facilities properly – I don’t think anybody has a problem with that – but to tax the very people who might actually need to use them, or tax people extra who have actually saved for their retirement, to me, seems counterproductive,” he said.

“If you know you’re going to get slugged with an extra tax when you’re older out of your superannuation, then you won’t bother with superannuation.

“You’ll put your money into other things, or spend it all and let the government take care of you.”

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Cassandra Goldie, Chief Executive of the Australian Council of Social Service, told Tom Elliott the proposal was “one of a number” being considered.

“It’s a debate we need to have,” she said.

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