Who said this a few years ago – I guess it’s not that hard to guess who it might be.
At the moment if you’re on a 48 per cent marginal tax rate, and an employer makes a contribution into superannuation on your behalf, you get a 33 cent tax concession ¢â¬â if you are a millionaire or a multi-millionaire.
If you happen to be under $20,000, and an employer makes a contribution on your behalf, you get a 5 per cent tax concession.
Now, our tax system is premised on the fact that rates should go up as incomes go up. But under this superannuation system, concession goes up as income goes up. That’s the basic unfairness.
How do you look the battler in the eye and say ‘when your money goes into super, you get a 5 per cent tax concession. When a millionaire’s money goes into super, he gets a 33 per cent tax concession?’