When compared with other areas of the tax system, superannuation is one of the “biggest and most easily reformable”, director of tax communications at H&R Block, Mark Chapman, told SMSF Adviser.
“Of all the various pots of money that the government could raid to reduce the deficit, superannuation seems to be one of the biggest,” said Mr Chapman.
He has also called for certainty around the future of super tax concessions to provide stability for taxpayers.
“This reform process has dragged on a lot longer than the government suggested that it would. I think the whole thing was basically supposed to be done by now and it’s nowhere near that stage,” Mr Chapman said.
“It would be good to get some certainty around the government’s intention.”
The government released its tax discussion paper in March last year after several months’ delay.
At the moment, the final white paper is expected to be delivered in the first half of this year.
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Well if it is just the all too common unprincipled revenue grab they might find they are on the electoral chopping block.
The modern political school of “the voters have nowhere else to go. The other side is worse.” is ancient. It was tried by the Byzantine rulers of Syria, Egypt and Africa. They lost the lot to the Arabs.
Sorting out means tests properly first would be a better place to start.
The only principled reform would be deductible, exempt earning, taxable pension at end with grandfathering of current accounts under the silly taxable in system.