Treasury has cut $11 billion from its four-year estimates of revenue from superannuation taxes, as “overly large tax concessions” keep benefiting the richest retirees.
Already a subscriber?Treasury has cut $11 billion from the four-year estimate of revenue from superannuation taxes made five months ago, as Laborrevealed the government expects to make $88 billion from taxing the $3.6 trillion super sector over the next four years, 12.2 per cent less than predicted in December’s Mid-Year Economic and Fiscal Outlook.
Legislation increasing tax on earnings on balances above $3 million in super accounts is before parliament, for example, and Labor has committed to pay super on Commonwealth parental leave in a bid to close the gender gap in retirement savings. “We’ve massively overdone the concessions … take money from poorer Australians and give it to richer Australians. It’s a reverse Robin Hood,” he said.Three key principles of the tax system – encouraging savings, recognising that inflation can artificially inflate capital gains, and avoiding– “collide in silly ways inside super” to create a multiplier effect to the concessions, he said.
Superannuation funds also enjoy capital gains discounts and specific tax incentives for super contributions to encourage saving.
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