Super is a form of compulsory saving and I think it is a good thing. I have been retired 11 years and its certainly carried me through. To have to pay 15% only on excess earnings from the portion of the earnings produced by over $2mill is not much of an impost. I could be wrong but from what I understand it only applies to those who reach pension age and convert the fund to pension mode. Prior to conversion to pension mode all funds pay concessional tax on earnings and that wont change regardless the amount in the fund. When in pension mode, the fund pays no tax on capital gains and neither does the beneficiary on income received. Under the new proposals earnings from a fund in pension mode with about$2mill+ will pay 15% on amounts earned above that threshold.
The coalition as I understand does intend to hit the low end of super by removing special concessions that apply to all contributors that earn up to $37000. Some 3.6million low income workers will be impacted.
Its interesting that when this is mentioned the coalition resorts to saying how the earlier changes by the government impacted these people more. This is a questionable approach because even if that were true the coalition does not intend to remedy that and instead is going to further take and impact these 3.6million Australians.
I prefer no changes to Super but the Governments current plan that impacts a minuscule number of the most well off is better than one which threatens 3.6million low income Australians.
Seems like Tony Abbott and the Coalition are into class warfare. hitting low income Australians and instead focussing on providing concessions to the most well off. Just my opinions on this important issue.
