An article of mine on superannuation tax rorts in the Canberra Times
Posted by John, February 12th, 2013 - under Superannuation, Tax, Tax expenditures, Tax the rich.
This is an article of mine in the Canberra Times on Tuesday 12 February. I argue that the benefits of the superannuation tax concessions go disproportionately and overwhelmingly to the rich and that it’s time to end the super tax rorts.
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Comments
Comment from Caz
Time February 12, 2013 at 7:07 pm
Dear John,
Thank you for your article in the Canberra Times today (12/2/13), which I guess is mathematically sound. However, I am concerned about the narrow focus the article seems to have. For example, the dialogue neglects to include some facts such as many of the ‘super wealthy’ have already paid taxes sometimes several times over. Also, many people who have succeeded financially in their lives have studied and worked long hours in order to achieve their success. They have also put in long strategic hours to make their money grow so they can provide for themselves in their retirement. I am wondering why it is that people who grow up with welfare and contribute zero to society just expect the hard workers to keep funding their welfare over and over again. I understand some people need welfare through no fault of their own and others are unable to work; however there are many people who don’t work because they can’t be bothered. Just because a government can’t manage money does not mean they have the right to take money from those who can. Sometimes I feel like I am stupid putting so much effort in to earn honest for others to reap the rewards. This is my first blog ever and I have taken the time to write to you. Your consideration of hard working people will be appreciated. Kind regards, Caz.
Comment from John
Time February 13, 2013 at 5:10 am
Caz, when I put part of my taxed salary into the bank to earn interest, I pay tax on the interest. When I use that money to buy shares, I pay tax on the dividends. When I buy goods and services with after tax salary, I pay GST. When I buy a house I pay stamp duty. So why should retirement investment be any different? If it is fr social reasons to be different, then instead of using the tax system and giving most of the benefits to the super rich why not set up a grants system that helps less well off, fr example those full time workers on $35000. The idea that income reflects how hard one works is bunkum. Gina Rinehart doesn’t work any harder than you or me – what she does is harness others to work for her and live off our labour. Our system is designed around supporting these bludgers on other people’s labour. Most people aren’t on ‘welfare’ for long, and it is so low that they are in poverty. The real bludgers are, apart from the owners of capital like Gina Rinehart, those earning more than $150,000 a year getting billions in tax grants from the rest of us.
Comment from Dave Roberts
Time February 12, 2013 at 5:42 pm
50,000 retirees with > $4million in Super drawing >$150k tax free but the real rorts are they pay no Medicare, get the Senior’s Health Card (SHC) for nothing (no taxable income), pay $5.60 for prescriptions, get State and Fed govt handouts for electricity and other utilities, still have $18,200 tax free income available from assets outside of Super. Basically hard working young people, bringing up a family, paying off huge mortgages are paying for these millionaires to live in style and travel the World in cruise ships. Even if their pensions are not taxed the amount should be added to the adjusted taxable income (ATI) and Medicare based on the ATI and access to the SHC be based on the ATI.