Post by buzzanddidj on Aug 21st, 2013 at 10:16am
Retirees hit by Coalition's plan to fund Paid Parental Leave
20 August, 2013 1:55PM AEST
Expert says that the Coaliton's levy to help fund the Paid Parental Leave Scheme is a calculated move to take money from retirees and give it to the young rich
The Coalition's Paid Parental Leave plan is expected to cost 5.5 billion dollars. Robert Gottliebsen from the Business Spectator says that 1.7 billion of this amount will come from retirees.
The Coalition's announcement of a 1.5% levy on taxable company incomes of 5 million or more will be offset with a 1.5% fall in company tax.
Mr Gottliebsen says that many superannuation funds get a credit (called a franking credit) equal to the tax paid by the company. Reduce that tax and the amount of money moving into funds will be significantly reduced.
"It's a very straight forward bang from one generation to the next."
Although 1.5% doesn't sound like much, it amounts to 1.7 billion dollars.
"It's a massive amount of money, and Joe (Hockey) knows that, he planned it very carefully."
Mr Gottliebsen calls it an "inter-generational attack game, in which the older generation is losing."
Robert Gottliebsen warns that if too much is taken away from self funded retirees, the current tax payer will have to pay more in aged pensions.
"If you keep doing them and think they're a soft touch in the end they say blow it we'll go on ten cruises and the pension, and spend their money."
http://www.abc.net.au/local/audio/2013/08/20/3829773.htm