Hi Tarvoid ,
A couple of points , the average return over the last 10 years for Aus Super was 8.6% , so 1.6million dollar account goes close to 140k in pension phase.
On the aged pension, there are a lot of positives in giving all those over 67 an aged pension.
And , with some modifications to retirement income taxation , doesn't have to be that expensive.
I did the " sums'' a few years ago , and I would expect that pension for everybody would be even more fiscally responsible now.
If you tax superannuation withdrawals as they should be [ie before Costello and Howard made super pensions tax free] , by taxing them as income , with adjustment for tax paid [ approx 15% ] , and you tax the aged pension as income , it all works out rather nicely.
If you are concerned about the fairness of Gina getting a pension , do the sums yourself on her situation.
Doing mine , I would actually be a tad worse off , so my bet is treasury would make a fair bit of money out of her.
This sort of change is a bit like the recent 3rd stage tax cuts.
If explained properly , it would be an electoral winner. Note , post 60 on super your tax free threshold would be 40k plus .
More people would win than lose , and a lot of the winners would be old fart coalition voters at present on part pensions.
I can imagine Dutton saying , "Albo's a liar , I will stop him taxing big super accounts , sorry about your pension increase. "
It also gets rid of a lot of complexity in the system , none of the farting around at the margins.
It also picks up the irritation that very large super balances cause.
And it even means that you dont have to screw around with franking credits , as eventually they get taxed on withdrawal.
yay!
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