Why does everyone what to tax Super
In a time when many Australians will retire with not enough money why is the talk about taxing it. What defines Rich. Perhaps what we should be doing is allowing people to put as much as they like in super and then tax then when the draw down. The first $50,000 could be tax free.
Keep in mind if we raise the GST retirees will also be paying taxes trough services. Lets encourage people to save for there retirement. If they cannot get this right then I suggest people invest in other assets especially property.
I would lobve to see what others think here.
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This topic was modified 9 years ago by
Nigel Kibel.
Nigel Kibel | Property Know How
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I recall reading that there are several SMSF with funds of over $100mil that are in pension phase and earning tax free income.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Yes certainly is the case post 2007 and with thanks to Mr Costello.
Unfortunately it looks like i won’t be old enough quick enough to enjoy the fruits of a Tax free retirement unless it can get passed in the last year of the next term of govt lol.
Then it will be Tax from 55-60 and hopefully Tax free from there on in…..
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Super is just a backup for government to tap into. And a big one. Nothing will change.
After the tax is taken out, and then taken out again, and after the ‘authorised caretakers’ take their cut, after lawyers take a percentage because we want the money earlier and after some other government ‘tax’…we might have enough to pay off the remainder of our mortgage when we retire at umm, 75. Lucky we have businesses that generously fund the super system otherwise we could have something to complain about…
As a twenty-something I am certainly not counting on being able to access my Super… By the time I am old enough to even think about it I am confident the Gov will well and truly take their slice. Hopefully there is something semi-decent left over! But certainly not counting on it!
Don’t be silly!
Super is taxed at 15% going in, whereas you may be taxed at 47% otherwise. Earnings inside the fund are taxed at 15%, what has you may be taxed at 47%. And once you meet a condition of releases the fund could be exempt from income tax and CGT nd you could be drawing out the money tax free. Super is a tax haven.
Fees depend where the funds are invested. They could be very low in a SMSF.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
And this is the point I am trying to make, Terry. I am talking about the low to middle income earners – people living day to day.
For the majority (low to middle income earners) having an SMSF is not feasible. And as the age of retirement increases do you think the majority are going to wait longer to access their super? So you can see how the majority are disadvantaged in relation.
Perhaps a system where low income earners are not taxed on the super contributions from their employer?
Same tax rates apply to low to middle income earners. No need for a SMSF to get advantages. Laws may change in the future but we can only speculate what these changes will be. The purpose of super is to provide for retirement – but he seems some very well off individuals are takig extra advantage.
I would rather see those with very large balances taxed extra.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I just come across this article
http://www.smh.com.au/federal-politics/political-news/labor-offers-to-end-super-concessions-for-the-rich-20150401-1md29e.html?stb=lknQuote from teh article
“ASFA shows, for example, that there are 475 people with more than $10 million in their superannuation accounts earning $1.5 million in income and there are 100,000 people in Australia with superannuation balances in excess of $2 million,” he said.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I see your point Terry. Super = advantage for well off investors.
Dammit should have been born earlier.
Any taxation changes need to make sure they encourage individuals to self fund for retirement – the current system is clunky.
I’d rather a complete re-haul of the system than a tax grab. Earlier elected access ages via annuity but at a low tax rate etc.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
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The issue I find most unreasonable is that we are all locked in (to an extent) to a system where the goal posts keep moving. We are asked to make investment decisions now based on rules that will most certainly not exist in the future. Outside super when rules change you can pivot. Inside not so much.
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
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This topic was modified 9 years ago by
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