Aussie Super changes - the thin end of the wedge?
Apr 9th 2013, 4:15 am
#1
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Aussie Super changes - the thin end of the wedge?
http://www.bloomberg.com/news/2013-0...n-savings.html
"Earnings over A$100,000 a year for retirees from superannuation assets will now be taxed at 15 percent, Swan told reporters in Canberra today. The changes will affect 20,000 people and save about A$900 million over four years, he said."
So, Aussies getting $100K will (at the present time) pay no tax, but those earning more than this from their savings will get taxed.
But once it's in law, what's to stop the gubbermint from lowering the threshold? Look at the way Gordon Brown used to dip his fingers into the UK pension fund....
Is this the thin end of the wedge, and will NZ follow in Oz's footsteps?
"Earnings over A$100,000 a year for retirees from superannuation assets will now be taxed at 15 percent, Swan told reporters in Canberra today. The changes will affect 20,000 people and save about A$900 million over four years, he said."
So, Aussies getting $100K will (at the present time) pay no tax, but those earning more than this from their savings will get taxed.
But once it's in law, what's to stop the gubbermint from lowering the threshold? Look at the way Gordon Brown used to dip his fingers into the UK pension fund....
Is this the thin end of the wedge, and will NZ follow in Oz's footsteps?
Apr 9th 2013, 4:52 am
#2
221b Baker Street
Joined: Jun 2010
Location: Miles from anywhere, Victoria, Australia.
Posts: 14,125
Re: Aussie Super changes - the thin end of the wedge?
http://www.bloomberg.com/news/2013-0...n-savings.html
"Earnings over A$100,000 a year for retirees from superannuation assets will now be taxed at 15 percent, Swan told reporters in Canberra today. The changes will affect 20,000 people and save about A$900 million over four years, he said."
So, Aussies getting $100K will (at the present time) pay no tax, but those earning more than this from their savings will get taxed.
But once it's in law, what's to stop the gubbermint from lowering the threshold? Look at the way Gordon Brown used to dip his fingers into the UK pension fund....
Is this the thin end of the wedge, and will NZ follow in Oz's footsteps?
"Earnings over A$100,000 a year for retirees from superannuation assets will now be taxed at 15 percent, Swan told reporters in Canberra today. The changes will affect 20,000 people and save about A$900 million over four years, he said."
So, Aussies getting $100K will (at the present time) pay no tax, but those earning more than this from their savings will get taxed.
But once it's in law, what's to stop the gubbermint from lowering the threshold? Look at the way Gordon Brown used to dip his fingers into the UK pension fund....
Is this the thin end of the wedge, and will NZ follow in Oz's footsteps?
Sounds a lot doesn't it - $100,000 untaxed for a pension BUT that is only if the fund continues to perform well enough to produce that year after year without touching the capital. Somewhat unlikely probably.
It is a DISINCENTIVE to save and an INCENTIVE to find a way round paying the tax.
Super in Oz is a pretty good system, 15% on the way in (instead of 30% on income) and it was wholly free on the way out.
I regret to say that you are right. What bugs me is that it taxes those who could be bothered to save for themselves to pay for those who won't.
Ho hum. Rant over.
Apr 9th 2013, 6:21 am
#3
I like kittens.
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Re: Aussie Super changes - the thin end of the wedge?
Nope. You're right. I get really fed up with these bar-stewards moving the goalposts mid-game, or even changing the rules entirely.
"Okay, people, here's how we're going to play the game." Then, when you've spent 20 or 30 years playing the game under THEIR rules, "Okay, people, now we're going to change the rules on you, so that you get screwed! Again!"
And the only ones who 'benefit' are those on benefits!
"Okay, people, here's how we're going to play the game." Then, when you've spent 20 or 30 years playing the game under THEIR rules, "Okay, people, now we're going to change the rules on you, so that you get screwed! Again!"
And the only ones who 'benefit' are those on benefits!
