”Australia seeks to turn theoretical wealth into actual poverty by taxing imaginary money. I hope the world is paying attention.”
People that study law do know from their first year onwards that there is the letter of the law and the spirit of the law. In order to understand what the spirit of the law is one has to understand what was the objective that the law makers had in mind when passing the law, which is not a very hard thing to do.
Here one can clearly see that the objective is to block multi-millionaires from using the superannuation system to avoid paying taxes at company or personal tax rates. By putting a large part of their savings into supper they will be paying the same rate of 15% as the average worker with no more at retyring time than 250 grand in supper, and cash them out latter on plus all the accretions (gains) at nil tax rate.
Unfortunately, there are lots of people that are willing to swallow anything being said by those opposing the change as, once introduced, these millionaires will have to put their money in offshore heavens if they want to obtain similar concessional tax rates.
