Australian Politics Forum - Tax breaks on super, capital gains to cost 300B

philperth2010

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Re: Tax breaks on super, capital gains to cost 300B
Reply #15 - May 22^nd, 2014 at 8:48am

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/

Angry

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Bam

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Re: Tax breaks on super, capital gains to cost 300B
Reply #16 - May 22^nd, 2014 at 9:08am

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.

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Frances Gold Member Offline Australian Politics Posts: 3577 In a Castle in the Hills Gender:	Re: Tax breaks on super, capital gains to cost 300B Reply #17 - May 22^nd, 2014 at 9:15am 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?
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philperth2010

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Re: Tax breaks on super, capital gains to cost 300B
Reply #18 - May 22^nd, 2014 at 9:36am

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

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?

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!!!

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If knowledge can create problems, it is not through ignorance that we can solve them.
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John Smith

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Re: Tax breaks on super, capital gains to cost 300B
Reply #19 - May 22^nd, 2014 at 9:41am

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.

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philperth2010

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Re: Tax breaks on super, capital gains to cost 300B
Reply #20 - 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-multimi...

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If knowledge can create problems, it is not through ignorance that we can solve them.
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John Smith

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Re: Tax breaks on super, capital gains to cost 300B
Reply #21 - May 22^nd, 2014 at 10:08am

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-multimi...

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

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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Frances Gold Member Offline Australian Politics Posts: 3577 In a Castle in the Hills Gender:	Re: Tax breaks on super, capital gains to cost 300B Reply #22 - May 22^nd, 2014 at 10:17am 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.....
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teddybear Gold Member Offline Australian Politics Posts: 662 melbourne Gender:	Re: Tax breaks on super, capital gains to cost 300B Reply #23 - May 22^nd, 2014 at 10:21am Frances wrote on May 22^nd, 2014 at 10:17am: 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..... Wow your full of CLASS "NOT"
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philperth2010

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Re: Tax breaks on super, capital gains to cost 300B
Reply #24 - May 22^nd, 2014 at 10:27am

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

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-multimi...

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

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

Huh

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If knowledge can create problems, it is not through ignorance that we can solve them.
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King FriYAY II

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Re: Tax breaks on super, capital gains to cost 300B
Reply #25 - May 22^nd, 2014 at 10:27am

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

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

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?

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.

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philperth2010

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Re: Tax breaks on super, capital gains to cost 300B
Reply #26 - May 22^nd, 2014 at 10:31am

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

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

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

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?

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-jum...

Huh

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If knowledge can create problems, it is not through ignorance that we can solve them.
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King FriYAY II

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Re: Tax breaks on super, capital gains to cost 300B
Reply #27 - May 22^nd, 2014 at 10:42am

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

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

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

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

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?

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-jum...

Huh

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?

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Bam

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Re: Tax breaks on super, capital gains to cost 300B
Reply #28 - May 22^nd, 2014 at 4:15pm

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

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

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

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

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

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?

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-jum...

Huh

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.

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John Smith

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Re: Tax breaks on super, capital gains to cost 300B
Reply #29 - May 22^nd, 2014 at 5:13pm

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

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

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-multimi...

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

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

Huh

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

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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