There has been quite a lot of discussion about why the super system has to change.
I have retired, am 62 and am drawing a pension from my SMSF and have a taxable indexed pension.
Why change is needed was bought home to me this morning as I was completing some pre end of FY actions. I deposited $3,000 into my wife's super fund to take advantage of the $540 tax rebate. I then moved money out of my fund and re-contributed it as a concessional contribution, paying $15% tax to reduce my tax liability. So taking my negatively geared investment property into account I will end up paying about $400 in tax rather than around $10,000.
If I was a good citizen, recognising the revenue problem, I could just not take these actions. However they are all available and legal and I am just as avaricious as the next person. Besides I am not keen to see my tax paying for submarines, data retention, prison camps and xenophobic propaganda. I want to make my own decisions as to how I make charitable donations. Maybe the system is OK after all!
