Super matters no media wants to let people know

September 6th, 2017 No comments
6th Sept 2017

Debate: is the new means test for the aged pension fair?

The meanest means-test of the age pension.
The Australian government provides every retired person with the safety net of the age pension, subject to the means test.

According to the means test of income, a single pensioner loses 50 % of the age pension after his/her income exceeds $162 a fortnight or $4212 per annum; a couple loses after an income of $4288.00 per fortnight or $7488.00 per annum.
If a single self funded retirees income falls below $1896.00 per fortnight or $49296.00 a year, or a couples income falls below $2902.00 per fortnight or $75452.00 per annum they can claim a part age pension.
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No media wants to print this super data.

September 3rd, 2017 No comments
3’rd Sept

Debate: is the new means test for the aged pension fair?

The meanest means-test of the age pension.
The Australian government provides every retired person with the safety net of the age pension, subject to the means test.

According to the means test of income, a single pensioner loses 50 % of the age pension after his/her income exceeds $162 a fortnight or $4212 per annum; a couple loses after an income of $4288.00 per fortnight or $7488.00 per annum.
If a single self funded retirees income falls below $1896.00 per fortnight or $49296.00 a year, or a couples income falls below $2902.00 per fortnight or $75452.00 per annum they can claim a part age pension.

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The rotten systems and is there an alternative

January 8th, 2017 No comments

The Rotten Systems, and is there an Alternative?

The so called Civilizations since mankind came out of the cave, or maybe  down from the trees have hardly changed over thousands of years, because we are now as brutal to each other as they were in the stone ages; the only difference is, that thousands of years ago, men fought each other with sticks and stones, and now destructive weapons are used to the point that the planet on which we live could be completely destroyed in matters of minutes, if the potent weapons, designed by very clever people, put into the hands of not so clever, so called leaders, be they Kings, Dictators or just Politicians, and none of the latter display any scruples or courage to speak up against what should be spoken up against.

But in the so called Democracy, are the Politicians only to be blamed?

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Million dollar super income; no tax.

February 14th, 2016 No comments

How many retirees have super balances of $10 Million plus and pay no income tax?

It would be a small percentage of the retirees, but it costs the government probably some $15 billion in tax-loss, yet it is simply ignored by the government and the opposition in the recent tax debate. Read more…

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The impact of the superannuation means test on the average worker …

January 18th, 2015 No comments

 

The problem with the Australian superannuation system, is, that even after a working- lifetime of contribution, the majority of retirees will still depend for a large part of their retirement income on the age pension, and being held close to the poverty line, by the means test of the age pension, while the self funded retirees will live in opulence.

… in my humble opinion, it would be very appropriate if a much watched and noted program like Four Corners would bring the “Great Australian super fraud” to the attention of the general public.

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Hawil the Bloody New Australian

September 16th, 2014 No comments

Hawil, the New Australian

The first job Hawil had in Australia, was in a factory by the name of Simpson Pope, in Dudley Park S.A.
Having never worked in a metal factory, it was rather a new experience for Hawil.. The first few days, he was given a grinder, and with some other workers, they were grinding off welding burrs on bed frames. Being new to this task, he was not performing best, in comparision to the other more experienced workers in this field, as he was trying to smooth too well the welding spots, which took too much time, and if he tried to keep up with the other workers, his work did not pass the ‘quality’ inspection.

The foreman in the section where Hawil was employed, was a man of some fifty years, who had no teeth and spoke rather indistinct for him too understand; in the two month that Hawil worked under him, he hardly understood a word he was telling him, but despite that, they got on rather well.

One day he made Hawil work on a press, pressing sheets of metal, aproximately one square meter into sides of washing machines. Before starting, he intended to give Hawil some safety instructions, which rather did not turn out the best. The job required, to put a sheet of metal into the slot of the press, while the top portion was up, and then make sure to keep the fingers clear of the press when it came down to shape the metal. The foreman placed a sheet of metal into the slot of the press and then turned towards Hawil, trying to tell him to keep his fingers clear of the press, which he himself forgot to do, and as a result, his right index finger was almost squashed to a quarter if its thickness. A very unfortunate lesson in safety! The job was rather boring, but he had to concentrate, so that he did not finish up with losing some fingers.

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Means test of age pension creates two classes of citizens

July 20th, 2014 No comments

5th July 2014

Dear Mr.Southcott.

Thank you for your letter of the 25’th of June 2014 in which you state “There have been no adverse changes to the superannuation system for self-funded retirees”, and then you give some figures on pensions and their indexation, all of which I,am well aware, because they are easily accessible either from Centrelink or government data.

 My concern is the means test of the age pension.

By using the means test for the basic age-pension, the government splits the Australian retirees into two groups; the 80% of either full or part-pensioners, which are greatly affected by the means test, and the other 20% of self-funded retirees, who greatly benefit from the tax-free super, if the income is derived from a so-called taxed fund, and the recipients of large defined super income, with more than $200,000 of super, who benefit to the tune of $20,000 from the 10% tax offset, which is more than a single pensioner receives in age-pension.

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Government dodges super elephant

May 9th, 2014 No comments

Government dodges the super elephant.
Superannuation tax breaks described by Australia Institute as the Hindenburg of the federal budget
AM, by James Glenday
Audio: Think tank wants big change to retirees’ benefits (AM)
“Superannuation concessions are unfair … the top 5 per cent of income earners get a third of the benefit, and the bottom 20 per cent get literally nothing.”

The report suggests scrapping concessions entirely, introducing a universal or non-means-tested age pension and upping the current rate by about 7.5 per cent to $26,273 a year for singles and nearly $39,611 for couples.

The Australia Institute says that plan would cost about $52 billion annually, leaving the budget between $13 billion and $22 billion better off. It says more money would flow to women and poor people.

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Fair Taxation for all

January 26th, 2014 No comments

 

 

 

The Hon. Tony Abbott, MP
Prime Minister
Parliament House
CANBERRA ACT 2600

26th Jan 2014

Dear Mr. Abbott.

 

On the news on ABC 24th Jan 2014 you were reported as under:

“My hope is to have a really frank leaders-only discussion in Brisbane about the biggest issues we face … because taxes need to be fair as well as low in order to preserve the legitimacy of free markets.”

 

Yet the Australian government practices great discrimination among its own citizens, as below:

 

 

This is how the retirees are treated in Australia.

Retiree: 1)
Worked for 45 years and paid taxes, but did not accumulate enough assets to be completely independent of the age-pension. For every dollar of extra income for him and his wife above $6,500, the couple loses $0.50 of age pension, and if their income exceeds $45,000 per annum, the couple will pay tax of $0.315 in the dollar including medicare levy, leaving them with an income of $0.185 from every dollar extra income. For the defined benefit income a 10% tax-offset applies if paid from an Australian super fund, but not if the income comes from an overseas fund.

Retiree 2)
Has accumulated assets of $1.5million,mostly with huge tax concessions, and the assets are in a so-called taxed Self Managed Super Fund. To be very conservative, the assets are in a term deposit earning 7.0% income of $122,500 per annum and even if the retiree is single, he/she will not pay a cent of tax.
Now if the assets are in fully franked shares, like banks, and return $100,000 worth of franked dividends, he/she will again pay no tax on the dividend, and the government will send him/her a cheque of $30,000 for the franking credits.

Should the assets of these retirees fall below a certain level, they will be entitled to the age pension as anyone else, therefore why does the government provides the rich retirees with such huge tax concessions, while punishing the retirees at the lower income scale with the punitive means-test of the age pension?

Retiree 3)
Is an ex-politician or highly paid public servant, in receipt of a defined benefit pension of $100,000, on which he/she will have to pay tax, but he/she gets a 10% tax offset, which equals $10,000 after reaching retirement age, but before retiring, the public servant can establish a SMSF and contribute into it extra with tax concessions if the $25,000 total for under fifty and $50,000, if over fifty is not exceeded and in addition he/she can contribute $150,000 from after tax income, and the earnings from the SMSF will only attract 15% tax, and when the person reaches the age of 60 even the income will be completely tax-free for the SMSF.

Retiree’s 2) are well represented by the media and the super industry, as well as the Unions, and retiree’s 3) are represented by the government, and ironically by the leadership of various retiree Associations, like ACPSRO and its affiliated Associations, but who represents retiree’s 1) the part- pensioners who are being robbed of a decent standard of living in retirement by the means-test of the age pension.

 

What is the fairest solution; scrap the mean test of the age pension and scrap all tax concessions for super.

 

I worked as a fifteen year old under third-world condition in my country of origin and paid into compulsory super, from which I now receive a small pension, but for every dollar of that pension, the Australian government takes away $0.50 of Centrelink pension and $0.31 tax and medicare levy, which amounts to a virtual 81.5% tax rate, when a self-funded retiree pays no tax at all.

 Now how can any government consider that fair.

Enclosed is an excerpt from a book “Debt man walking” by Bruce Brammall.

The Hon. Tony Abbott, MP, leads an accountable and open government that welcomes your views and feedback. You can ask the Prime Minister a question, give advice and pass on well-wishes here.

Hawil

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Sinodinos please answer

October 22nd, 2013 No comments

To The
Senator the Hon.
Arthur Sinodinos
PO Box 6100
Senate
Parliament House
Canberra ACT 2600

22nd. Oct.2013

Dear Sir.

I,am a part-pensioner receiving income from a SA government super, some overseas pension and a part Centrelink pension.
The total income for my wife and myself is some $50,000 per annum, and on that income I pay $450 tax and $450 medicare levy, yet a single self funded retiree with an income of $100,000 plus pays no tax nor medicare levy if his/her income is derived from a so-called taxed super fund.
How can any government justify this discrimination?
Please find attached a letter I sent to Penny Wong and other labour politicians then in government.
Hawil

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