SHORTEN PENSION GRAB

Originally posted by john3000 ↑

The Grattan Institute did the sums on this proposal and found that :

The fact of the matter is that it is primarily the wealthy that will be impacted by Labor’s dividend imputation policy, according to Grattan:

Around 33% of the extra tax from Labor’s policy will be paid by (mainly wealthy) individuals who own shares directly, 60% will be paid by self-managed superannuation funds (typically held by wealthier retirees), and the remaining 7% will be paid by super funds regulated by APRA.

Among individuals, the poorest half of all retirees own less than 2% of all shares held directly. By contrast, the wealthiest 40% of retirees own 97% of all shares held directly, and the wealthiest 20% alone own 86% of all shares held directly.

Grattan notes that Australia’s superannuation and tax system remains absurdly generous to older Australians, with older Australians paying less in tax today than they did 20 years ago, despite higher workforce participation and incomes, and the proportion of seniors paying tax almost halving in 20 years, from 27% in 1995 to 16% in 2014.

https://www.macrobusiness.com.au/20...misleading-labors-dividend-imputation-policy/

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Since July 201, a cap of 1.6million has been imposed on every Australian, limiting the amount of super in retirement phase. Put that 1.6million into the bank and get 2.5% interest ie $40,000.

This was in The Australian Newspaper the other day but is hidden behind a paywall. Source is from Treasury analysis of the A.T.O. data base.

Taxable Income No. of Individuals Percentage of individuals affected Franking Credits Refunded

Less than $18,200 610,000 54% 500million
$18,201 -$37,000 360,000 32% 800million
$37,001-$87,000 120,000 11% 600million
$87,001-$180,000 30,000 2.6% 200million
Greater than $180,000 5,000 0.4% 100million

Therefore, according to the ATO and Treasury, people with a taxable income of less than $18,200 (54%) will receive an average of $820.
""" $18,201 -$37,000 (32%) will receive an average of $2,222
""" $37,001-$ 87,000 (11%) will receive an average of $5,000
""" $87,001 -$180,000(2.6%) will receive an average of $6667
""" Greater than $180,000(0.4%) """""" $20,000
Post no.31952656, from Frasier, on the 22/3/18 also shows these figures. Without any doubt these figures show that the majority of lower earning Self Funded retirees/pensioners would be greatly affected by Shorten's proposal. If indeed Labor does get into power, next election, and enact this, one would think a lot of Self Funded people would probably contemplate joining a bigger fund and this is what the bigger funds want. When one considers the Accountancy and Audit and compliance fees costs of $3,000 to $4,000 a year and the low interest rates banks are now paying and add up the benefits Pensioners gets , council rates, car rego, health card benefits etc, there really isn't that much difference if you are 65odd with near a million in your own Personal fund. (PLEASE. DON'T think I am having a shot at pensioners there. They to have paid their taxes and made their own sacrifices. ) It's only that both sides of politics want to grab this money and they have the MOST generous arrangements in place for themselves! Most of us, in this situation have worked two jobs and saved, trying to do what we thought was the right thing and it's frustrating to say the very least.

Regards Twoup