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Bowen labels govt ‘fiscal vandals’ over super promises
Shadow Treasurer Chris Bowen has continued his push for higher superannuation taxes for the wealthy, and has labelled the Abbott government’s record on superannuation in this term as one of “wreckage and ruin”.
Late last month, federal opposition leader Bill Shorten outlined Labor’s tax policy for superannuation if the party is elected to government.
This plan includes taxing earnings in retirement at 15 per cent for those earning over $75,000 and reducing the threshold of the high-income super charge to $250,000 from $300,000.
Speaking at the National Press Club yesterday, Mr Bowen reiterated the Labor party’s belief that the current tax concessions for superannuation earnings in retirement are unsustainable.
“Tax-free superannuation assets in retirement phase now account for about 30 per cent of total super assets. This will grow to 44 per cent in the next 30 years. That’s exactly why the earnings concession on superannuation is the fastest growing tax concession in the entire federal Budget,” Mr Bowen said.
“The Budget papers show the total cost of superannuation tax concessions, earnings and contributions actually outstripping the cost of the aged pension by the end of the forward estimates period. That is in just four years.
“This is a challenge for budget sustainability and it must be met right now. Tony Abbott and Joe Hockey expect us to believe that this is affordable, as they say it with a straight face. They promise to never ever change it. If they really believe that, they are nothing short of fiscal vandals.”
In a separate announcement yesterday, Mr Bowen noted the growth in superannuation tax concessions is three times that of the growth in the age pension.
“This data all highlights a challenge of Budget sustainability and fairness that must be met right now,” Mr Bowen said.
“A long list of economists and stakeholders have been pushing for the sustainability and fairness of our superannuation tax concessions to be reviewed and addressed by the Abbott government, including COTA, ACOSS, the Grattan Institute, the government’s own Commission of Audit and Financial Systems Review, as well as the Treasury Secretary.”
Here again we have the inept labor stooges who have in 6 years destoyed the country. Mr Bowen if he retired tomorrow would be on an indexed pension for life. how about the same rules applied to him. After 75000$ he PAYS HIS BLOODY FAIR SHARE OF TAXES when he retires. SAy 50% TAX rate. It's only FAIR.
First any politician cannot access any pension until the rest of the population does. They usually take their pension and go work in universities, One rule for the Labor Elite, and another for te
He average Joe
If some one has worked hard, played by the rules, good luck to Them. But 75000$ is over time not going to be much, so most people will be sucked into labor tax grab.
LABOR STOP SPENDING. It's that simple.0- Dr Terry, a lifetime annuity only from your super is a 100% death tax on savings. For this no one will contribute, well employer SGL only. One third of the Federal budget is social welfare expenditure and this is really the problem. When I hear about all sorts of benefits available to families with household incomes up to $150,000 or more I see that it is the middle income people who are not pulling their weight. Charge 1,000 billionaires an extra $10,000 in tax and you get just $10 million. Charge 10 million workers just $100 tax or reduced benefits and you get $1 billion.0
- How is the cost of earnings and contributions tax concessions calculated? Assumptions have to be made about the behaviour of people in the absence of these concessions, difficult guesswork. I suggest people would probably engage in more gearing, claiming the interest deduction and/or might invest in life office bonds. To assume they will say "Oh well, just have to pay tax at my marginal rate" is a nonsense.0
- Mr. Bowen. Is the dark knight of the opposition Government.
How on earth you punish the very people that makes this country wealthy,The rich have a well earned rignt to what they have or own. They are the people that create wealth for themselves and for others that have not opportunitty to do so. Of course if you have got nothing left in the gray matter above the shoulders. The only thing you can think is how to take away what is legitimate0 - How about someone who really knows facts runs an expose on the Whitlam created Politician's extremely over generous Super Fund which continues Full pay (indexed) FOR LIFE (& Partners too?) once they are elected twice. Even if kicked out or even Jailed. I believe also that many senior Public Servants have latched on to this too!0
- tip chris bowen upside down and give him a good shake, hey? There's nothing else that can be done for him.0
- The fact that superannuation concessions are costing us more than the expenditure on Age Pension arguably reinforces the design of superannuation.
You look after yourself, there is a carrot for doing so, and you won't need the Government to look after you. It is concerning that the current debate is focusing on where to cut down expenses , increase revenue rather than developing a pension system that allows people to be off the social security net.
Tightening of the age pension means testing is one sensible step in addressing self sufficiency. In my opinion, the more the super concessions are costing the Government, it is reflective of increasing private savings which should lead to a reduction in Age Pension expenditure over the long-term0 - Lying by omission: Bowen states top 10% of earners get 35% of super concessions.
He forgot to mention that the top 10% pay 45% of personal income tax!0 - The concessions given to the top end of town by the Howard Government was not sustainable. This is used as a vehicle to minimise tax.0
- Well, here's one former Treasury tax policy economist who does not agree. What is required is that super be paid out as annuities or pensions and there be a $1 for $1 income test on all Commonwealth benefits. It is NOT a "subsidy" to let you keep your own money.
By the way, Mr Bowen and his Labour Party voted without criticism for the 2007 superannuation tax changes. It's hardly ancient history yet! So are they vandals and wreckers too? Doubtless superannuation savers might think so if they loot other people's money!0
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