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13/02/23
06:41
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Originally posted by boomeronrations
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"We pay tax on contributions and on earnings with regards to Superannuation"
Well , I for one , paid bugger all tax on my contributions , 15% mostly .
So my tax was discounted mostly by 35c in the dollar[ might even have been 45c for 1 or 2 years].
The earnings in the fund were taxed at 35c per dollar less than they would have been if they were outside super.
So , I didn't pay much tax going in or during , so zero tax after not justified.
I had the huge benefit of a much larger investment ''float '' , compounded for decades in a tax advantaged fund.
The community has paid much more than it needed to keep me off a pension , that I was never going to be on anyway.
Would have been a lot cheaper to give me the pension.
That is not to say that I agree with your sentiments regarding the limit.
Just not sure it goes far enough.
cheers
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Another reason lower tax rate is justified for Super I feel is that it is compulsory and your money is locked away for a long time.
At its core, Superannuation goes against my capitalist ideals but I also understand the needs and benefits for it in that the majority of people can't save money.