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Occam, It would be possible to start the change by saying that...

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bacci

11,832 Posts.

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01/08/19

13:04

Post #: 39810253
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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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Occam,
It would be possible to start the change by saying that all new accounts are taxed on withdrawls at full marginal rate with no tax on deposits from pretax or earnings.
I would also suggest that the fund can be used to cover periods of unemployment or medical treatment. The account would become a personalised social security fund.
bacci
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0 Great analysis

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