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_fivqxKm050y3i... 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.
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