End wasteful super handouts
A whopping $18 billion per year are wasted on handouts to the wealthy in superannuation tax concessions, while low income earners struggle to save for their retirement. The system's completely upside down!
That money should be used to put more into the super accounts of those who really need it — so we have fewer people needing the pension — and to reverse devastating cuts to our hospitals, to care for the ageing population.
Let the Government know you'd rather close tax loopholes than hospitals by signing the petition to make our retirement system fair.
Superannuation Tax Concessions are tax breaks for contributions put into superannuation savings, as well as for the earnings on super investments. The Government gives out tax breaks for super to boost contributions, savings and investments. Why? Because superannuation is a public good – it helps Australians retire with dignity and reduces reliance on the age pension, boosting the budget bottom line.
By taxing most superannuation contributions at a rate of 15%, the biggest tax breaks go to higher income earners, and low-income earners get little to no benefit, which is completely back to front.
Where top earners get a tax break from 45% to 15%, middle income-earners receive a smaller break, from 30% to 15%. Absurdly, people under the tax free threshold (earning less than $18,200) actually pay 15% more tax on their super contributions than they do on their regular income.
The very people who need these tax concessions most are missing out. In fact, 60% of all superannuation tax concessions ($18 billion) go to Australia's top 20% of income earners.
Where top earners get a tax break from 45% to 15%, middle income-earners receive a smaller break, from 30% to 15%. Absurdly, people under the tax free threshold (earning less than $18,200) actually pay 15% more tax on their super contributions than they do on their regular income.
The very people who need these tax concessions most are missing out. In fact, 60% of all superannuation tax concessions ($18 billion) go to Australia's top 20% of income earners.
Our friends at The Australia Institute have released a policy report to make super tax concessions progressive. This means, instead of a blanket 15% rate, tax concessions will be tiered at different rates for different income levels.
By reforming superannuation tax concessions so their benefits flow to those who need them most, we can save the budget billions of dollars every year, help more Australians retire with dignity and reduce the number of people on the Age Pension (which saves even more for the budget down the track).
Click here to learn more about this proposed reform and the 7 other Brighter Budget policies produced by The Australian Institute and commissioned by GetUp members: https://www.getup.org.au/brighterbudget
By reforming superannuation tax concessions so their benefits flow to those who need them most, we can save the budget billions of dollars every year, help more Australians retire with dignity and reduce the number of people on the Age Pension (which saves even more for the budget down the track).
Click here to learn more about this proposed reform and the 7 other Brighter Budget policies produced by The Australian Institute and commissioned by GetUp members: https://www.getup.org.au/brighterbudget
The Government's determined to save money — so GetUp members are getting on the front foot to ensure these savings are fair and sustainable over the long-term. Instead of the austerity cuts that attack everyday Australians, we're campaigning for a Brighter Budget this time around.
Aside from Super Tax Concessions, the Brighter Budget policies cover:
Aside from Super Tax Concessions, the Brighter Budget policies cover:
- Fossil fuel subsidies. Cutting subsidies to polluting industries. It's bad enough there's no price on pollution, but we don't have to reward polluters with tax breaks.
- Super profits tax on banks. The big banks make inflated profits thanks to a lack of competition. A tax on those super profits would help compensate Australians for higher fees and charges.
- The Buffet Rule. Thanks to tax loopholes and high priced accountants, Kerry Packer famously reduced his effective tax rate so he paid less tax than his gardener. "The Buffet Rule" would put a cap on loopholes for high income earners.
- Reform capital gains. Concessions on capital gains tax predominantly benefit the wealthy, who have a larger proportion of their income from investments.
- Reform negative gearing. Reform tax concessions for negative gearing so they only apply to new housing stock and last for ten years. This will help make housing more affordable and increase the stimulus for new building.
SIGN THE PETITION
To Prime Minister Turnbull, and the Honourable Members of the House and Senate:
It's time to reform superannuation tax concessions for the wealthiest Australians, so that the greatest benefits in our retirement system go to those who need them most.
46,947 signatures
We need 3,053 more
In taking action, I agree to GetUp's Privacy Policy.