1) I'm no finance expert, explain all this to me in laymans terms
We all put a standard 9% of our income towards our superannuation account, designed to support us when we retire. The government also contributes to our super, only in a slightly different way. Instead of contributing cash directly, the government allows us to contribute some of the money we owe for tax into our super accounts.
Now, here's where the problem is. The percentage of their tax bill that high-income earners are allowed to keep is far higher than low-income earners. In fact, the bottom 10% of earners can get absolutely no help with their super from the government, while the top 10% are allowed to keep over $15 billion. This is money that could otherwise be spent on healthcare, education, infrastructure or any number of worthwhile areas.
2) Why are wealthier people getting more help from the Government than those who need it most?
Great question, it doesn't make sense to us either. Australia's wealthiest few will retire handsomely regardless of the additional concessions given to them. The money the government is choosing to give these people needs to be redistributed to areas in real need.
3) If high earners have worked hard to put away more, shouldn't they be allowed to keep more too?
Of course. No one is saying the money our most wealthy people put away for retirement should be anything other than theirs, 100%. What we do believe is that these people do not need any additional help, certainly not the billions and billions of dollars they are currently receiving.
This money needs to end up in areas where it is needed most.
4) What even is a tax concession?
The government contributes to our super by allowing us to keep some of the money we would otherwise have spent on income tax.
