For starters daver. The figure commonly being bandied around, by Labor people, were a tax hike will strike is a super amount of $800,000 or more.
That is not just the top 10% of people being effected. It is more like the top 30%. And before you go wow $800,000 that's really rich! Think again. This is supposed to last you the rest of your life. An annuity on $800,000 would be lucky to reach $35-40,000 per annum. It is hardly rich territory.
Now let's say the communtards get their way and taxes on super are increased at that level. What is the likely result?
Well one consequence will be these higher earners, the top 30%, will put less into super. Remember this is money that is set aside until they retire. But why bother when they tax the crap out of it! And will probably tax it even more down the track!
Where would they put it? Probably buy bigger more expensive houses?! House doesnt count for pension asset test. And result is they are more likely to get a part pension. So the money Government pays for pensions will see an increase. At the same time, the expected increase in revenue from the increased tax will be less because people will put less into super!
Get the picture.
This is a stupid idea who's time has unfortunately come.
