Super investors to get slugged

06/11/2009

Superannuation investors may be slugged by higher tax rates said the Treasurer Wayne Swan yesterday.
In a wide ranging speech on tax issues in Melbourne, Mr Swan said some Australians would lose and some would win from the reforms coming out of the Henry Tax Review.

High income earners could lose some tax concessions now available through superannuation.
Tax payers with simple tax affairs could also be spared the need to complete a tax return under the proposed changes.

Source: The Age

 

Realistically super is designed to reduce the burden on the taxpayer for future pension payments is it not? I don't see how this is being achieved in the current system, at the moment its a great tax structure for high income earners whereas low / middle receive very little. The wealthy isn't what the system was designed to support surely?

Cheers,
David

 

Hi David,

As far as I am aware the superannuation system is designed to reduce retirees burden on the government system for retirement assistance by forced savings. This forced savings is usually known as SGC which to some of us is part of our employment package (read 9% of your salary is being saved for your retirement to reduce your burden on the government when you eventually retire).

Cheers,

Dan

 

Reading between the lines, this means the government needs to plug the holes where they are losing money...Maybe they should stop hacking away at PAYG tax brackets?

 

It seems to me like a prelude to overture....don’t you think ?