Here is a piece by Mike Steketee on Superannuation.
He lists all the horrific inequities noted by Darren Wickham, arising from our present superannuation arrangements. For example:
- contributions to super are taxed at a flat 15 per cent; this provides no tax break at all for low income earners e.g. on the estimated tax breaks of 24 billion dollars, some 17 billion went to the top 25% of highest income earners;
- if the aim of policy is to save on future government pension payments, it is totally misdirected;
- the co-contribution scheme (under which the Government puts in 1.50 for every dollar allocated to super) leaves out most low income earners who simply cant take advantage of the scheme; instead the scheme is more likely to be used by second-income earners in high income households.
Darren Wickham then proposes a number of tax responses.
By adding further to existing superannuations (raising the guarantee further under existing conditions), isn’t the Government compounding the inequities?