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Thread: Top earners the big winners from [Costello's] super tax concessions

  1. #1

    Default Top earners the big winners from [Costello's] super tax concessions

    Why oh why do working class people even consider the Libs? This is very typical of their policy approach. It drives me insane.

    http://www.canberratimes.com.au/nati...219-1thlw.html
    About half of the $15 billion in tax breaks for superannuation contributions goes to the top 12 per cent of income earners, according to new research to be presented to the Senate this week.

    The Australian Council of Social Service says the other half goes to the bottom 88 per cent, with those at the very bottom getting nothing, even after proposed reforms.

    ACOSS will tell the Senate economics committee the proposed government contribution to the super funds of low-earning Australians would merely cut their tax penalty for putting money into super from 15 per cent to zero, leaving untouched the tax benefit for high earners of 32c in the dollar.

    ''We spend more on super tax concessions for high-income earners than it would cost to simply give them the pension,'' ACOSS tax policy officer Peter Davidson said.

    ''It's all the more wasteful because they are likely to save for their retirement.''

    ACOSS will propose a flatter system of support in which all super contributions are taxed at the worker's marginal tax rate, offset by a rebate paid into their super fund at the end of each year.

    One option modelled by the council would give a 100 per cent rebate for the first $300 of contributions, followed by a 20 per cent rebate for additional contributions up to $8000 per year.

    ACOSS says the proposal would be revenue neutral and would make 80 per cent of super fund members better off. ''It would be simple,'' Mr Davidson said. ''Employers already know their employees' marginal tax rates and already deduct tax. This tax would come out of super fund contributions, not wages.

    ''The proposal has losers, and they will complain. The problem is that the people who best understand the system are the high earners and their advisers who benefit from it the most. The 80 per cent who would benefit from the change understand super the least.''

    Superannuation Minister Bill Shorten has assembled a group of experts to advise him on ways to ensure the move from 9 per cent to 12 per cent compulsory super will not further disadvantage low income earners.

    ACOSS will also ask the government to limit the ''rort'' that allows workers aged over 55 to churn their income through super funds, making concessionally taxed contributions which they then withdraw as untaxed benefits.

    ''Right now tens of billions are churned through funds for no other purpose than reducing tax,'' Mr Davidson said.
    Freedom without opportunity is a devilís gift, and the refusal to provide such opportunities is criminal.
    -- Noam Chomsky

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  3. Default

    I didnt see the word Liberal once in that piece. Isnt that an article about ALP policy?

  4. #3

    Default

    Quote Originally Posted by axialturban View Post
    I didnt see the word Liberal once in that piece. Isnt that an article about ALP policy?
    It's tax law that Costello introduced that is being reviewed in a senate committee. Of course, vested interests will prevent this aspect changing much. As the article states that the review is "to ensure the move from 9 per cent to 12 per cent compulsory super will not further disadvantage low income earners."

    Nothing about changing it to remove the upper-middle-class welfare, only to prevent making it worse.
    Freedom without opportunity is a devilís gift, and the refusal to provide such opportunities is criminal.
    -- Noam Chomsky

  5. #4

    Default

    Costello introduced the $1,500 co-contribution where if you put $1,000 extra into super the Government would put in $1,500. This was specificaly aimed at helping low income earners put extra into super because almost anybody can afford $20 a week. This government super handout did not help high income earners any more than low income earners.
    Guess what, Kruddy Clown cut the co-contribution to $1,000. A direct hit on low income earners.

  6. Icon15

    Granny says, "Dat's right - big business ain't payin' it's fair share o' taxes...

    IRS AUDITS LESS THAN 1 PERCENT OF BIG PARTNERSHIPS
    Apr. 17, 2014 WASHINGTON (AP) ó A new government report says the Internal Revenue Service audits less than 1 percent of large partnerships, drawing criticism from Congress.
    The Government Accountability Office says the number of large businesses organized as partnerships has more than tripled since 2002, yet hardly any get close scrutiny by the IRS. In 2012, only 0.8 percent were subjected to field exams in which agents do a thorough review of books and records.

    The GAO defines large partnerships as those with more than 100 partners and more than $100 million in assets.

    Democratic Sen. Carl Levin of Michigan said many of the largest hedge funds and private equity firms are escaping IRS scrutiny.

    The report says the audit rate has been persistently low since at least 2007.

    http://bigstory.ap.org/article/irs-a...g-partnerships
    So here is my suggestion: Forget bombs -- we should drop Obama administration policy makers on Iraq and Syria. That would ensure the ruin of the Islamic State in no time!

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  8. Default

    Quote Originally Posted by Recusant View Post
    Why oh why do working class people even consider the Libs? This is very typical of their policy approach. It drives me insane.

    http://www.canberratimes.com.au/nati...219-1thlw.html
    The link you supplied, is an extract from the Canberra Times, dated 20th February 2012. FYI, at that time the ALP was in Govt, so your OP should have read, "Why oh why do working class people even consider the ALP? This is very typical of their policy approach. It drives me insane".

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