Bill Shorten Wants To Tax High Income Superannuants.

[POWERZONE]

Two proposals....

 

If you earn $250k a year, your contribution tax will go from 15% to 30%.

 

If you're a retiree, your super earnings will be taxed at 15% for every dollar above $75k a year.

 

So if your super earns $100k, your tax will be $3750, $200k? Your tax will be $18750.

 

This is predicated to raise $14b over 10 years.

 

http://www.abc.net.au/news/2015-04-22/la...ns/6410800

[POWERZONE]

In a good year? Around $1.1 million if your super earns 9% in that year.

 

It depends entirely on the performance of your fund, and your choice of investments within that fund.

 

What hasn't been explained yet is... will they tax your earnings above $75k?

 

Or... will they tax your withdrawals above $75k?

 

There is a big difference but I suspect it'll be the latter.

[treblid]

Doesn't affect me.. but what if the super loses money? No tax?

 

I'm sure the rich already figured out various loopholes already... 


 

[POWERZONE]

Yes, I expect the Government to target this proposal with statements of rampant tax avoidance schemes

[treblid]

Hi Power.

Billy Boy is getting ahead of himself I fear.

I believe the next election way down the track will see Libs returned with a friendly Senate.

True, depends on next FY's <del>budget</del> bribes I guess...

[POWERZONE]

I don't see a friendly senate happening after the next election. The majority of crossbenchers have fixed 6 year terms.

 

The Abbott Govt will lose at least a dozen lower house seats regardless of what bill Shorten does.

[POWERZONE]

The last two swings in the senate have been against the Liberal Party; once when they won the 2013 election and again when the WA recount was done. Given the poor performance of this Govt since then I fail to see how they can gain anything, anywhere, particularly the senate.


Also noticed the ALP are looking at winding back negative gearing. Good move!


It costs the budget $5 billion a year in lost revenue.

 

http://www.abc.net.au/news/2015-04-23/la...ng/6414558


Economic reality driving sense into some folks^TM I reckon

 

See ya Tunesday!

[treblid]

Economic reality driving sense into some folks^TM I reckon

:Money Eyes:  :Money Eyes:  :Money Eyes:  :LMAO:

[treblid]

Hi Power.

You say economic reality is driving some people.

I guess you mean the Libs?

That's pot calling the kettle black!

Since the election Labor has denied that an economic catastrophe is existing, caused by them!

Now suddenly they are pulling rabbits out of the hat to solve a problem that they say does not exist!

In case you spent the past year in a hole searching for rabbits.. As you know, the Liberal government did abs nothing (they simply couldn't get anything done)... But they have slowly changed the tone and now we no longer have an economic emergency.. i.e. the emergency suddenly disappeared... 

 

Now Labor's "denial" is no longer important, the Liberal "fixers"  has "fixed" it..

[Aloysius]

The last two swings in the senate have been against the Liberal Party; once when they won the 2013 election and again when the WA recount was done. Given the poor performance of this Govt since then I fail to see how they can gain anything, anywhere, particularly the senate.


Also noticed the ALP are looking at winding back negative gearing. Good move!


It costs the budget $5 billion a year in lost revenue.

 

http://www.abc.net.au/news/2015-04-23/la...ng/6414558


Economic reality driving sense into some folks^TM I reckon

 

See ya Tunesday!

 

 

 

Heh Heh that's the thing about pendulums - they swing one way - and sooner or later they swing the other way!! :notworthy:

 

Even blinded folks are part of this phenomenon, just like folks who talk about people searching for rabbits.

 

Hopelessly biased comments like a government doing absolutely nothing are a mere indication of inability to perceive current affairs in an unbiased fashion.

 

 

Sad but true !!

[Aloysius]

 

why would PZ be referring to the Libs Peter ?

 

who actually steered Australia out of the GFC recently with measures that the Libs opposed and if they were successful would have sunk us years ago

 

im sure you are familiar with the term the end of the  resources boom ? its the term the current Libs are using as their excuse for breaking the promises they made at the last election

 

you brought up rabbits and hats, where were you when the lights went out ? ...it was all over the papers and just about any political commentator from here to even The Economist in England regarded the ALP as a better choice for economic management than a bunch of nobodies like Abbott and Hockey with undefined policies and unrealistic promises ...probably creaming over The Bolt Report or listening to Alan Jones insult Julia Gilards deceased father and having Abbott repeat the lines in Parliament

 

when it comes to moral ground Peter, nobody can sink lower than The Liberal Party of Australia

 

 

 

Heh Heh  too much induced serenity here methinks!!

:angry2:  :angry2:

 

The ALP negotiated the GFC spending all the savings that the previous government had accrued and then with 6 major deficits gave us a significant debt to repay - us and the coming generations.

 

Add to that opposition to any and all attempts to repair the damage the ALP and it's apologists have no further to sink.

 

To some an end to a mining boom is an excuse for Liberal National government, but they appear somewhat eager to blame a GFC for ALP mismanagement of the economy.

 

 

Bah humbug!! open both eyes and see the bias that others can readily identify.

 

As for quoting British commentary on Aussie politics - Joking - Right?

 

 

Anyone remember Swannie? :rundog:  :rundog:

[Aloysius]

MY you seem to be pretty well acquainted with conditions under a rock!! :Loser:

 

And there you go again - you can recall Abbott saying no but you cannot remember Shorten doing it - and more recently at that!!

 

Does that reinforce ones perception that your perception is somewhat limited by the number of seeing organs being employed? :ras:

 

Must be harder to see from under a rock I suppose :blink:  :blink:

[Aloysius]

if you actually lifted the rock Aloy you would see where Shorten says NO but actually offers tangible, achievable, realistic and fair alternatives

 

all Abbott could do was say NO and then go hide under one

 

:bee:

 

 

Listen to others MY - you continue to keep your ocular senses limited - Shorten has offered two alternatives?

 

Abbott supported 80% of the previous governments legislation - that doesn't sound at all like your "spurious" claim :Shame:  

 

As for running away - Can't do that it's hardwired in - you must be able to relate to that! :beer:

[Aloysius]

Pot Kettle BLACK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! :rundog:

[POWERZONE]

Hi Power.

You say economic reality is driving some people.

I guess you mean the Libs?

That's pot calling the kettle black!

Since the election Labor has denied that an economic catastrophe is existing, caused by them!

Now suddenly they are pulling rabbits out of the hat to solve a problem that they say does not exist!

*Tunesday*

 

As Mello said I don't see how my economic reality statement could have any connection with the Liberal Party?

 

If such a link existed their performance wouldn't be so inept so I agree, it would be a pot calling the kettle black

 

But I'm referring to the ALP looking at winding back negative gearing as stated in the post.

 

It's overdue because it's unsustainable IMO.

[Aloysius]

http://www.perthnow.com.au/business/brea...7324704189

 


Stop making super about rich people: HESTA
 

 

Tell it out babe, the politics of envy is a poisoned chalice hells bells a large number of CFMEU members are going to fall into the "rich" category - more internal drama for Bill to contend with.

 

Good luck Bill.

[Aloysius]

http://www.heraldsun.com.au/business/rba...7325527755

 


<p style="text-align:inherit;font-size:18px;">WORKERS on the brink of retirement will have to take on more risk to adequately

<p style="text-align:inherit;font-size:18px;">fund their golden years, the head of the Reserve Bank says.


<p style="color:rgb(0,0,0);font-family:'Guardian Sans', Tahoma, 'Trebuchet MS', TrebuchetMS, sans-serif;font-size:16px;background-color:rgb(245,245,245);">Stimulus measures by central banks around the world may be helpful for economies but are crimping returns on low-risk investments such as term deposits, RBA governor Glenn Stevens says"

<p style="color:rgb(0,0,0);font-family:'Guardian Sans', Tahoma, 'Trebuchet MS', TrebuchetMS, sans-serif;font-size:16px;background-color:rgb(245,245,245);">Note: this is nothing to do with Abbott it's a world wide phenomenon and Abbott isn't  as influential as that.

<p style="color:rgb(0,0,0);font-family:'Guardian Sans', Tahoma, 'Trebuchet MS', TrebuchetMS, sans-serif;font-size:16px;background-color:rgb(245,245,245);"> 

<p style="color:rgb(0,0,0);font-family:'Guardian Sans', Tahoma, 'Trebuchet MS', TrebuchetMS, sans-serif;font-size:16px;background-color:rgb(245,245,245);">But it does bring into focus the apparent desire to wack self funded retirees .

[POWERZONE]

Debby Blakey misses the point when she says "The whole point of superannuation is that it's for every Australian"

 

Nope, the whole point of superannuation is that it's to take every Australian off the pension.. eventually.

 

It should never have allowed to be a tax avoidance vehicle for high income earners.

 

 

 

Aloysius, who exactly is "wacking" self funded retirees? :blink:

[Aloysius]

That's a very good question PZ!

 

Since I know that you are interested in Super - for your own purposes, it cannot have escaped your attention that a great number of attacks on super funds  and superannuation investors have been made in recent months.

 

As you say: "the whole point of superannuation is that it's to take every Australian off the pension.. eventually."

 

Essentially the attacks come from that subset of society who want a free ride on the backs of those who deferred gratification, who saved part of their earnings, who invested wisely and who do not wish to be a burden on the rest.

 

I understand why they want to do that but I sure do not believe that is just.

 

As for incentives given to encourage saving - I'm all for that 

 

As you know the funds accumulated are used to provide investment - that means we benefit from savings as a nation.

 

 

When an economy has been run down, as it has in our case, folks cast around for any fruit they can pick.

 

Any political attacks on super are merely driven by poll watching pollies, the real attack comes from the folks I describe.

[POWERZONE]

Hi Peter, the more rich people you have the more poor people you have - that's the law of averages!

 

I agree with not raising/broadening the GST.... apart from hurting the poor, in the long term, it would be economic stupidity for 2 reasons...

 

a> the money goes to the states, which does nothing for the federal budget.

 

b> it adds to consumption - which increases inflation - which in turn increases future welfare payments indexed to that inflation - which increases the structural deficit.

 

 

 

As for entry exit rules, the law is an ass.... thanks to Tony Abbott, low income earners under the tax threshold actually pay more tax into their super than they do with their regular income...

So the tax avoidance scheme can't be used by anybody, it can only be used as benefit by high income earners.

 

As Aloy said, I'm interested in super but it needs to be sustainable... if people continue putting millions into super and then enjoy untaxed income from it it's only a matter of time before it becomes unsustainable. Already the contributions concessions cost almost as much as the aged pension.

 

The system needs to be more flexible to account for the above 2 scenarios.


I do think Bill Shorten's idea of a threshold of $75k earned before being taxed at 15% is a bit low however. When you reach the preservation age the chances are your health expenses will take a fair chunk out of your income... so IMO It should be $100k as advocated by the Rudd II Govt..

 

What scares me even more however is Joe Hockey toying with the idea of raising the preservation age. NO THANK YOU! In 2007 I sold two properties and put the entire taxed money into super based on the preservation age being 60. I don't mind paying the Bill Shorten tax, but I DO object to being told by the Govt I can't have the money until I'm too old to enjoy it.