Quote:

Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said.

Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows???

:-? :-? :-?

http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI

Why are they ignoring the rort of Negative Gearing??

Its a smacking joke. The so called 'budget emergency' would be fixed overnight and we would have a whopping surplus if these ridiculous rorts were fixed.

Naah.. why risk really putting the elites noses out of joint when we can, as usual, just kick the poor and vulnerable and pretend the elites are pulling their weight?

It is only $300 billion over the next three years and growing.....Surely the budget can sustain these concessions to keep the major parties in favour with top income earners.....We all need to pull our weight apart from those who can most afford it after all!!!

:-? :-? :-?

I have respectfully asked for a meeting with my local member to discuss the matter.  ;)

We'll see how this goes.

polite_gandalf wrote on May 21^st, 2014 at 8:13pm:

Its a smacking joke. The so called 'budget emergency' would be fixed overnight and we would have a whopping surplus if these ridiculous rorts were fixed. Naah.. why risk really putting the elites noses out of joint when we can, as usual, just kick the poor and vulnerable and pretend the elites are pulling their weight?

Someone here proposed using a Debit Tax on bank transactions to sort things out.
I can't remember the numbers quoted, but they were quite impressive.

What I liked about it was that it seemed to be the fairest form of taxation.

The OAP withdraws $20 and pays his/her 1%.

The Mining Co withdraws (transfers) $20M and pays their 1%.

I like it....

;)

philperth2010 wrote on May 21^st, 2014 at 8:02pm:

Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI

You shouldn't have to pay capital gains tax on your own home.

That's a bad idea.

Better to take away negative gearing.

If the budget is in such a mess, why should home owners (and landlords for that matter) get concessions?

Fit of Absent Mindeness wrote on May 21^st, 2014 at 9:14pm:

If the budget is in such a mess, why should home owners (and landlords for that matter) get concessions?

Quite simply PL, because there is no budget emergency.

Bobby. wrote on May 21^st, 2014 at 9:08pm:

philperth2010 wrote on May 21st, 2014 at 8:02pm: Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI You shouldn't have to pay capital gains tax on your own home. That's a bad idea. Better to take away negative gearing.

While I am against NG, I am prepared to compromise....

NG on a new-builds only, not existing homes.

;)

Take away all tax concessions on superannuation, problem solved

Lobo wrote on May 21^st, 2014 at 9:44pm:

Bobby. wrote on May 21st, 2014 at 9:08pm: philperth2010 wrote on May 21st, 2014 at 8:02pm: Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI You shouldn't have to pay capital gains tax on your own home. That's a bad idea. Better to take away negative gearing. While I am against NG, I am prepared to compromise.... NG on a new-builds only, not existing homes. ;)

That would discourage people from building new high density flats & units
which is exactly what we need to stop the long drives to work.

Forget about propping up old borer infested, asbestos ridden houses for people to live in..

Bobby. wrote on May 21^st, 2014 at 9:54pm:

Lobo wrote on May 21st, 2014 at 9:44pm: Bobby. wrote on May 21st, 2014 at 9:08pm: philperth2010 wrote on May 21st, 2014 at 8:02pm: Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI You shouldn't have to pay capital gains tax on your own home. That's a bad idea. Better to take away negative gearing. While I am against NG, I am prepared to compromise.... NG on a new-builds only, not existing homes. ;) That would discourage people from building new high density flats & units which is exactly what we need to stop the long drives to work. Forget about propping up old borer infested, asbestos ridden houses for people to live in..

Don't really see how.
People still buy/rent  flats/units.

Think I may have lost something in translation with that bit about old houses.

Not all pre-owned are in bad condition, and are often first homes for young couples.
This is the market I would keep quarantined from NG investors.

Regarding your 'old borer infested, asbestos ridden houses' though. a young couple bought something along those lines across the park from me.

Seriously rundown, but with, as they say, potential.
Leaving themselves the garage to sleep in they completely renovated it themselves.
Totally gutted it and took about 6-7 months.
Did a brilliant job.

Made me feel guilty complaining about painting my eaves.

Still living there, 3 kids....

:)

Lobo wrote on May 21^st, 2014 at 10:18pm:

Bobby. wrote on May 21st, 2014 at 9:54pm: Lobo wrote on May 21st, 2014 at 9:44pm: Bobby. wrote on May 21st, 2014 at 9:08pm: philperth2010 wrote on May 21st, 2014 at 8:02pm: Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI You shouldn't have to pay capital gains tax on your own home. That's a bad idea. Better to take away negative gearing. While I am against NG, I am prepared to compromise.... NG on a new-builds only, not existing homes. ;) That would discourage people from building new high density flats & units which is exactly what we need to stop the long drives to work. Forget about propping up old borer infested, asbestos ridden houses for people to live in.. Don't really see how. People still buy/rent  flats/units. Think I may have lost something in translation with that bit about old houses. Not all pre-owned are in bad condition, and are often first homes for young couples. This is the market I would keep quarantined from NG investors. Regarding your 'old borer infested, asbestos ridden houses' though. a young couple bought something along those lines across the park from me. Seriously rundown, but with, as they say, potential. Leaving themselves the garage to sleep in they completely renovated it themselves. Totally gutted it and took about 6-7 months. Did a brilliant job. Made me feel guilty complaining about painting my eaves. Still living there, 3 kids.... :)

Considering that asbestos shouldn't be drilled, sawn or broken then renovating a house
full of asbestos is dangerous to say the least.

Fit of Absent Mindeness wrote on May 21^st, 2014 at 9:14pm:

If the budget is in such a mess, why should home owners (and landlords for that matter) get concessions?

I think the family home should be off limits, however investment properties should not be allowed to be renovated beyond reason to maximise negative gearing!!!

>:( >:( >:(

ian wrote on May 21^st, 2014 at 9:52pm:

Take away all tax concessions on superannuation, problem solved

I would go with that considering the cost will outstrip the aged pension in years to come.....How is this not an issue for the Federal Government???


Quote:

Australia's superannuation tax concession is too generous towards the wealthy and should be scrapped before it becomes an expensive drag on the country's finances, according to new research from the Australia Institute. The think tank said that tax concessions on superannuation will cost the budget around $35 billion in 2013-14 and are projected to rise to $50.7 billion in 2016-17, an increase of around 12% per annum. By this time superannuation tax concessions will be the single largest area of government expenditure. By comparison, the age pension currently costs $39 billion. According to the report, entitled Sustaining us all in retirement: The case for a universal age pension, the overwhelming majority of this assistance flows to high income earners while low income earners receive virtually no benefit.

http://www.financialstandard.com.au/news/view/39573915

Thank you John Howard and Peter Costello for selling off our Nation.....No wonder why we have a housing shortage!!!


Quote:

Significant changes were also made to superannuation policy in 2007. The majority of workers could now withdraw their superannuation tax-free upon reaching the age of 60. Most self-employed can claim their superannuation contributions as a tax deduction. In addition, semi-retired people can continue to work part-time, and use part of their tax-free superannuation to top up their pay. Despite the relatively generous tax treatment of capital gains, the new superannuation tax treatment led to the selling off of some assets, particularly rental housing, as people sought to take advantage of the opportunity to add funds to their superannuation accounts and claim them back later tax-free. People were allowed to transfer up to A$1 million into their superannuation accounts before the June 30, 2007, after which an annual maximum of A$150,000 of after-tax contributions could be made. The effect of this change in the rules was enormous. In the June quarter of 2007, A$22.4 billion was transferred to superannuation accounts by individuals. This compares with A$7.4 billion in the June quarter of 2006. June 2007 was the first time in Australia that member contributions exceeded employer contributions.

http://theaimn.com/2014/04/14/the-superannuation-saga/comment-page-1/

>:( >:( >:(

philperth2010 wrote on May 22^nd, 2014 at 8:48am:

Quote: Australia's superannuation tax concession is too generous towards the wealthy and should be scrapped before it becomes an expensive drag on the country's finances, according to new research from the Australia Institute.

It is already an expensive drag on the country's finances.

ian wrote on May 21^st, 2014 at 9:52pm:

Take away all tax concessions on superannuation, problem solved

And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments?

Frances wrote on May 22^nd, 2014 at 9:15am:

ian wrote on May 21st, 2014 at 9:52pm: Take away all tax concessions on superannuation, problem solved And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments?

Make companies pay 12% superannuation into a pension fund to finance the aged pension and give the pension to everyone.....scrap tax concessions on super altogether and claw back negative gearing.....Problem solved!!!

:) :) :)

the govt. isn't really concerned about the budget .... it's just another tool in their 'divide and conquer' war chest.

Budget could be fixed without touching a single cent of pensions and unemployment benefits,  the real  problem is that the unemployed and pensioners aren't well known for donating to political parties. Part of the solution is to publicly fund election campaignes. Ban polittical donations altogether.

There is a definite need to address this situation!!!


Quote:

Accountants and tax advisers have blown the whistle on multimillionaire clients exploiting tax concessions in self-managed superannuation funds, urging the federal government to act against "tax leakage". Analysis by Fairfax Media of Australian Taxation Office statistics shows almost 9200 self-managed super funds have a balance of more than $5 million, a rise of 76 per cent in the past three years, and the number of funds with over $10 million has doubled. Treasury Secretary Martin ­Parkinson said on Tuesday that there should be a debate about whether the super system was creating incentives for people to ­manage their retirement incomes or whether it was being used as a wealth creation tool. "The issue is whether the existing super system actually is a retirement incomes system . . . or is it a wealth creation tool? If it's a wealth creation tool, who is ultimately benefiting from this?" Dr Parkinson said.

Read full article here.....

http://www.brisbanetimes.com.au/business/banking-and-finance/tax-leakage-multimillionaires-exploiting-superannuation-20140522-38po9.html

philperth2010 wrote on May 22^nd, 2014 at 9:48am:

There is a definite need to address this situation!!! Quote: Accountants and tax advisers have blown the whistle on multimillionaire clients exploiting tax concessions in self-managed superannuation funds, urging the federal government to act against "tax leakage". Analysis by Fairfax Media of Australian Taxation Office statistics shows almost 9200 self-managed super funds have a balance of more than $5 million, a rise of 76 per cent in the past three years, and the number of funds with over $10 million has doubled. Treasury Secretary Martin ­Parkinson said on Tuesday that there should be a debate about whether the super system was creating incentives for people to ­manage their retirement incomes or whether it was being used as a wealth creation tool. "The issue is whether the existing super system actually is a retirement incomes system . . . or is it a wealth creation tool? If it's a wealth creation tool, who is ultimately benefiting from this?" Dr Parkinson said. Read full article here..... http://www.brisbanetimes.com.au/business/banking-and-finance/tax-leakage-multimillionaires-exploiting-superannuation-20140522-38po9.html

it's an injustice and should have been dealt with ages ago

John Smith wrote on May 22^nd, 2014 at 9:41am:

the govt. isn't really concerned about the budget .... it's just another tool

As is Abbott.....

Frances wrote on May 22^nd, 2014 at 10:17am:

John Smith wrote on May 22nd, 2014 at 9:41am: the govt. isn't really concerned about the budget .... it's just another tool As is Abbott.....

Wow your full of CLASS       "NOT"  ;D ;D ;D

John Smith wrote on May 22^nd, 2014 at 10:08am:

philperth2010 wrote on May 22nd, 2014 at 9:48am: There is a definite need to address this situation!!! Quote: Accountants and tax advisers have blown the whistle on multimillionaire clients exploiting tax concessions in self-managed superannuation funds, urging the federal government to act against "tax leakage". Analysis by Fairfax Media of Australian Taxation Office statistics shows almost 9200 self-managed super funds have a balance of more than $5 million, a rise of 76 per cent in the past three years, and the number of funds with over $10 million has doubled. Treasury Secretary Martin ­Parkinson said on Tuesday that there should be a debate about whether the super system was creating incentives for people to ­manage their retirement incomes or whether it was being used as a wealth creation tool. "The issue is whether the existing super system actually is a retirement incomes system . . . or is it a wealth creation tool? If it's a wealth creation tool, who is ultimately benefiting from this?" Dr Parkinson said. Read full article here..... http://www.brisbanetimes.com.au/business/banking-and-finance/tax-leakage-multimillionaires-exploiting-superannuation-20140522-38po9.html it's an injustice and should have been dealt with ages ago

One must ask why this is being ignored by the major parties???

:-? :-? :-?

philperth2010 wrote on May 22^nd, 2014 at 9:36am:

Frances wrote on May 22nd, 2014 at 9:15am: ian wrote on May 21st, 2014 at 9:52pm: Take away all tax concessions on superannuation, problem solved And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments? Make companies pay 12% superannuation into a pension fund to finance the aged pension and give the pension to everyone.....scrap tax concessions on super altogether and claw back negative gearing.....Problem solved!!! :) :) :)

Yeah, because "companies" are just all rolling in $$.

How about forcing employees to put away 3% of their wage and help fund their own bloody retirement.

King FriYAY II wrote on May 22^nd, 2014 at 10:27am:

philperth2010 wrote on May 22nd, 2014 at 9:36am: Frances wrote on May 22nd, 2014 at 9:15am: ian wrote on May 21st, 2014 at 9:52pm: Take away all tax concessions on superannuation, problem solved And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments? Make companies pay 12% superannuation into a pension fund to finance the aged pension and give the pension to everyone.....scrap tax concessions on super altogether and claw back negative gearing.....Problem solved!!! :) :) :) Yeah, because "companies" are just all rolling in $$. How about forcing employees to put away 3% of their wage and help fund their own bloody retirement.

Companies are already paying super contributions and even the Abbott Government is set to increase it to 12% although they have slowed down the increase for some inexplicable reason.....If my proposition does not have merit then please explain why???

http://www.superguide.com.au/how-super-works/superannuation-guarantee-set-to-jump-33

:-? :-? :-?

philperth2010 wrote on May 22^nd, 2014 at 10:31am:

King FriYAY II wrote on May 22nd, 2014 at 10:27am: philperth2010 wrote on May 22nd, 2014 at 9:36am: Frances wrote on May 22nd, 2014 at 9:15am: ian wrote on May 21st, 2014 at 9:52pm: Take away all tax concessions on superannuation, problem solved And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments? Make companies pay 12% superannuation into a pension fund to finance the aged pension and give the pension to everyone.....scrap tax concessions on super altogether and claw back negative gearing.....Problem solved!!! :) :) :) Yeah, because "companies" are just all rolling in $$. How about forcing employees to put away 3% of their wage and help fund their own bloody retirement. Companies are already paying super contributions and even the Abbott Government is set to increase it to 12% although they have slowed down the increase for some inexplicable reason.....If my proposition does not have merit then please explain why??? http://www.superguide.com.au/how-super-works/superannuation-guarantee-set-to-jump-33 :-? :-? :-?

A lot of places are surviving month to month, they don't need any more impost on their bottom line.

Should go no higher than 10%...and why not a forced employee contribution?

King FriYAY II wrote on May 22^nd, 2014 at 10:42am:

philperth2010 wrote on May 22nd, 2014 at 10:31am: King FriYAY II wrote on May 22nd, 2014 at 10:27am: philperth2010 wrote on May 22nd, 2014 at 9:36am: Frances wrote on May 22nd, 2014 at 9:15am: ian wrote on May 21st, 2014 at 9:52pm: Take away all tax concessions on superannuation, problem solved And force retirees who had, on the basis of information available at the time that they had put aside enough to fund their retirement, onto social security payments? Make companies pay 12% superannuation into a pension fund to finance the aged pension and give the pension to everyone.....scrap tax concessions on super altogether and claw back negative gearing.....Problem solved!!! :) :) :) Yeah, because "companies" are just all rolling in $$. How about forcing employees to put away 3% of their wage and help fund their own bloody retirement. Companies are already paying super contributions and even the Abbott Government is set to increase it to 12% although they have slowed down the increase for some inexplicable reason.....If my proposition does not have merit then please explain why??? http://www.superguide.com.au/how-super-works/superannuation-guarantee-set-to-jump-33 :-? :-? :-? A lot of places are surviving month to month, they don't need any more impost on their bottom line. Should go no higher than 10%...and why not a forced employee contribution?

There already is a 9% forced employee contribution - that's what "compulsory" means. It's paid for out of withheld pay rises.

We can easily get it to 12% at no net cost to companies by abolishing bracket creep and adding 0.5% each year; a 4% pay rise with bracket creep is worth roughly the same as a 3.5% pay rise without it.

If you want to increase the employee contributions, first do the following: (1) abolish the dodges that allow companies to count salary sacrificed contributions as a part of the compulsory contribution, (2) make it mandatory to pay it every 3 months and (3) give employees more power to put pressure on employers who do not pay superannuation contributions on time, including the right to strike until it is paid and the same right of action to recover the debt as any other creditor including the right to wind up the company.

philperth2010 wrote on May 22^nd, 2014 at 10:27am:

John Smith wrote on May 22nd, 2014 at 10:08am: philperth2010 wrote on May 22nd, 2014 at 9:48am: There is a definite need to address this situation!!! Quote: Accountants and tax advisers have blown the whistle on multimillionaire clients exploiting tax concessions in self-managed superannuation funds, urging the federal government to act against "tax leakage". Analysis by Fairfax Media of Australian Taxation Office statistics shows almost 9200 self-managed super funds have a balance of more than $5 million, a rise of 76 per cent in the past three years, and the number of funds with over $10 million has doubled. Treasury Secretary Martin ­Parkinson said on Tuesday that there should be a debate about whether the super system was creating incentives for people to ­manage their retirement incomes or whether it was being used as a wealth creation tool. "The issue is whether the existing super system actually is a retirement incomes system . . . or is it a wealth creation tool? If it's a wealth creation tool, who is ultimately benefiting from this?" Dr Parkinson said. Read full article here..... http://www.brisbanetimes.com.au/business/banking-and-finance/tax-leakage-multimillionaires-exploiting-superannuation-20140522-38po9.html it's an injustice and should have been dealt with ages ago One must ask why this is being ignored by the major parties??? :-? :-? :-?

My guess is that it comes down to political fund raising ... you can't piss off your donors

philperth2010 wrote on May 21^st, 2014 at 8:02pm:

Quote: Tax breaks on superannuation, capital gains to cost $300b Tax breaks on capital gains and superannuation could cost almost $300 billion over the next three years, budget figures show, renewing calls for the Abbott government to scale back concessions. Economists said exemptions on fresh food, education, health and ­financial supplies from the goods and services tax – estimated to cost almost $78 billion over the period – also need to end. Updated forecasts from Treasury in the federal budget papers show the capital gains tax exemption on the family home, the 50 per cent CGT discount and superannuation concessions remain the biggest costs to the budget.The figures are an update on Treasury’s tax expenditure statement released earlier this year. It had forecast out to 2017-16, whereas the budget papers forecast further out to 2017-18. Since most household saving is concentrated in property and superannuation, the cost to federal revenue could grow as a percentage of GDP if no action is taken to tackle the budget sacred cows. Bank of America-Merrill Lynch chief economist Saul Eslake said CGT and super tax breaks should be scaled back, but not totally eliminated. Deloitte Access Economics partner Chris Richardson said the Commission of Audit had already suggested including the family home in the pensions assets test. “Treasury has considered the potential for something similar around CGT,” he said. Many people on these boards have already stated how the budget could be fixed with more equitable measures taken instead of taxing the poor and changing our society for the worst.....Why are both major parties ignoring these sacred cows??? :-? :-? :-? http://www.afr.com/p/national/tax_breaks_on_superannuation_capital_fivqxKm050y3iAKE0WppcI

Because all the politicians benefit from the system and the Union bosses are also on the bandwagon, because many earn multiples of what their members earn, and many sit on boards of super funds, again collecting nice board fees.
Australian workers and retirees have been, split into two division: those who in retirement get the full age pension, or part pension; as soon as those pensioners get some extra income, they start to lose $0.50 from every $ extra income, which is nothing but a tax, and the other workers or retirees will not rely on any age pension, but still have the safety net of the basic pension, yet they will benefit hugely from the tax concessions on super.

The Australian government provides a safety net of the age pension to everybody of pension age and residential qualification, therefore if a “Self funded retirees” assets or income falls below the cut-off level of the age pension, he/she is entitled to a part-pension yet at the lower end of the pension scheme, a part-pensioner starts losing $0.50 of every dollar of the age pension, once a single pensioner earns $4,000 or a couple $7,000, keeping the retirees on very modest extra income virtually on the poverty line.
How can the Australian government get away with this blatant discrimination of the age pensioners; because Associations like COTA, ACOSS, SCOA, SA Superannuants, all other Associations affiliated with ACPSRO and the Unions fail to represent the interest of their lower income or wages members, because the leaders of this Associations benefit more from the governments generosity towards the high-income and assets benefits them in the same way as the politicians.
I have written about the "Great Australian Super Fraud" on hawilspoint, but nobdy wants to take notice of it.