Archive for April, 2013

Retiree super discrimination

April 4th, 2013 No comments

Super discrimination.

The Australian social system is constructed in a way, where retirees just above the allowed income scale for a full old-age pension are punished by the means test of the pension, losing $0.50 for every dollar extra income, and if the combined income of a pensioner couple exceed approximately $50,000 per annum they may pay $0.30 in the dollar tax plus medicare levy.

Now consider the self-funded retiree couple with 2million $ worth of assets can have an income of $100,000 plus, and if the income is from a taxed fund, they will not have to pay a cent of tax, which would be close or above the full age pension.

Should their assets fall below $1,086,000, they can apply for a part age-pension. As the government provides a safety net of the basic age-pension for every person elligible, why provide such huge tax concessions for the top 10% of retirees?

Why doesn’t the government scrap the means test of the age-pension and scrap all tax concessions for super? Considering that the fund managers typically earn anywhere from a bare minimum of about $500,000 to several millions of dollars a year, as reported in the AFR 1’st of April under the heading “The great super grab” by John Kehoe, it is understandable that the super industry is up in arms against any changes to super by the government.
Who benefits mostly from super? Not the average wage or salary earner, but the fund managers and the people who can contribute $25,000 into super, but how many can do that?
Yours hawil

NO Australian government is willing to change the unfair social system, and any individual can hardly influence them enough to do so, yet the Unions, which are supposed to look after the average Joe Blow, only use their positions to further their own causes, always striving to get into politics and enjoy all the perks the politicians enjoy.
Then, there are other Associations which are supposed to represent the part=pensioners, like ACPSRO, (Australian Council of Public Service Retiree Organization) and its affiliated Associations, who also only look after the wealthiest of their members.

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