Hi,I agree, impossible to reverse.But possible to partially sort...

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boomeronrations

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31/07/19

16:57

Post #: 39791598
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Originally posted by occam: ↑

I gree with your sentiment, however, the Liberals didn’t start it. When they formed their policy on the balance cap , Labor had already announced that they would tax pensions in retirement for anybody earning more than $75000.
The real problem developed when Keating first started the Super system. Contributions were taxed on the way in. From then on politicians just couldn’t keep their hands off it , adding dozens of new rules restrictions, and taxes over the years. Finally, yesterday, Fitzgerald said in the Australian what I have been saying for years.
No contribution tax. No tax on fund earnings during accumulation phase. And then tax retirees at normal rates when they start drawing the pension. By this stage the balance is much larger and that system would be far less complicated , and there would not be the constant bleating about concessions. A number of countries do this . Sadly Govts have come to be reliant on the tax revenue so nothing likely to come of it. Once bad policy is introduced , and we have many in Australia, they are almost impossible to reverse.

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Hi,
I agree, impossible to reverse.
But possible to partially sort out. The worst problem is the tax exempt post 60 year old income.
Tax the withdrawal from super at a rate which reflects previous tax paid.
Not that hard, the system already exists[the old 55 to 60 year old retirement cohort].
Essentially gives a tax free threshold of about 40k, then a progressive, although reduced tax over that.
But possible and likely to happen, 2 different things.
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0 Great analysis

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