"How Labor's tax policy will deliver 'perverse' outcomes" AFR

here we go again,

"How Labor's tax policy will deliver 'perverse' outcomes"

 

But a couple with $1m are rich...

 

and rare

 

I must mix in the wrong circles.

 

You are in the elite group,

 

I can see a lot of people who did not want to go on the pension seeing it as an attractive option. Shorten really had bad advice on the outcomes for retirees and low income earners. The examples like this just keep coming in.

 

Totally agree.

We should be incentivising people to fund their retirement, NOT get rid of a few dollars (by going on an expensive holiday, buying a new luxury car, upgrading to a more expensive home, blowing it at the casino/horses/dogs, ...) so they can get more retirement income by raiding the public purse .

 

At what cost?

 

I don't think Mr Shorten and the silent closed back door control union people had a serious think about the plan under the test of originality..
That's the one item Labor will never understand that between life employment and death for someone who has worked paid all taxes and had a plan for self funded retirement and led a calibrated life,only to find out the rules changed and will vote against and start rebelling against entrapment..

 

The tax free earnings on up to $3.2m for a couple in pension phase which may continue for decades isn't really sustainable to bring in enough tax to support the ageing population. The number of employees working and paying tax to support the country is getting less and less.

I would expect some big changes to this tax free pension limits/income in the future, it is very very generous.

Maybe continue to tax Super in Accumulation phase the way it is, remove Contribution limits, once reach preservation age (60 for most now) tax Super earnings at Marginal tax rate.

The concessional tax rate in accumulation phase would allow one to build a bigger asset base, compounding with less drag due to lower tax rates, that would be the carrot to put money into Super.

 

I personally think if Labour win the next election and somehow manage to pass this change in whatever shape or form will mark the end of franking credits for future generations except may be pensioners and low income earners.

The rules will keep getting tightened ever so slightly over the coming decade. Once this becomes a law it will keep getting tinkered until almost everyone becomes ineligible to qualify except a handful mentioned above.

This is in my opinion inevitable, we may get lower personal income taxes in return.

Cheers,
Oracle.

 

Huge cost to the Government, 20 to 30 years of full Aged Pension payments for the wife and me

 

From what you've disclosed here I'd say that's not true. There could be no super and you and your wife would have provided for your retirement - and get no pension.

For people like you and I the super system doesn't take us off the pension it merely gives us a tax advantaged additional savings vehicle.

Perhaps for others with similar income super will take them off the pension. So at what cost? Or what cost to the budget? For how long? It's complex, and I don't have the answers to those questions.

Planes, trains, (casinos) and automobiles:
I think it is inevitable that restrictions will be placed on how super is drawn down. If super is tax advantaged to provide for retirement then it only makes cents there are restrictions on how fast one can spend it.

 

Not if we withdraw enough to get us below the thresholds and take it to the casino to put all on red .

If BS wants to tell people how to spend their hard earned cash, that is a pile of BS’s BS.

We don’t tell people on welfare (eg pensioners) how to spend their payments .

 

Nonsensical post. Please repost in something that is understandable.

Is this what the Liberal/National/Liberal National/Country Liberal parties said to post in their latest newsletters?

 

Nonsensical post. Please repost in something that is understandable.

 

Did you not know that coalition is made up of four political parties?

It might scare the Menzies out of you, but the coalition is made up of four parties all working (attacking each other) together.

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