I agree with whaty you have posted and here is another post I have made as to why the reforms to super only really gave benefit to a few and are not sustainable.
But as usual there are those here more interested in pushing biased political views than the facts
The Howard government’s super reforms were nothing more than a vote buying exercise that was unsustainable and gave and conned the average person
Yes super was over taxed and needed to be reformed
Yes there is a problem with the aging population
Yes there is a need for retirees to self fund their retirement
One of the biggest problems (apart from tax) is that most people on retirement will not have enough money in super to fund their retirement due largely to not enough money going into super during the persons working life.
Yet the government has and continues to take 15% of the top of contributions every year. If the Howard government had been serious about reforming super, dealing with the aging population and helping the average Australian they would have removed or reduced the tax at this point.
The difference this would have made to a persons ability to self fund their retirement would have been massive.
Most Australians under the old system were paying very little tax on their super pensions anyway because of the smaller balances in their funds and the tax concessions that were already in place.
The only people who have gained any real benefit from the changes are people with more substantial super balances and the ability to transfer greater amounts of their wealth from environments where it was being taxed into super where it will be tax free.
This movement of wealth to a tax free status is unsustainable something the previous government had already become aware of and has to be reversed.
There are now assets going into super that would never gone anywhere near a super fund due to the potential value of the asset in the future and the tax consequences of exceeding the reasonable benefit limits.
I have a single member fund in front of me that has gone from being worth about $800K 2 years ago to being worth $2.7mil now. Without the changes the bulk of the $1.9mil increase would have never gone into super where it is now tax free and would have been taxed.
That is just one fund, I can pick up a dozen similar files
And that is what these people have been able to do in 2 years of the changes being known about.
Imagine the movement of wealth over a number of years
