End wasteful super tax breaks
The Turnbull Government is pushing through Parliament a modest, but important, first step in reforming wasteful super tax cncessions. But even after this reform billions will still be wasted in superannuation handouts for the wealthiest 2%.
Watch the video to learn about why we need thorough super tax reform, then join more than 46,000 Australians in calling for it.
A whopping $18 billion per year are wasted on handouts to the wealthy in superannuation tax tax breaks, while low income earners struggle to save for their retirement. This system is completely upside down!
There is broad support for reforming Australia's unequal superannuation system – including from people like former Commonwealth Bank CEO David Murray and organisations like Australia's largest accounting firm PricewaterhouseCoopers (PwC). Not to mention the Association of Superannuation Funds Australia and Industry Super – even the super industry, who benefit from these tax breaks, can't ignore the the inequality they create.
Join the call for thorough tax reform that focuses on Australia's future, and ends wasteful superannuation tax handouts.
Watch the video to learn about why we need thorough super tax reform, then join more than 46,000 Australians in calling for it.
A whopping $18 billion per year are wasted on handouts to the wealthy in superannuation tax tax breaks, while low income earners struggle to save for their retirement. This system is completely upside down!
There is broad support for reforming Australia's unequal superannuation system – including from people like former Commonwealth Bank CEO David Murray and organisations like Australia's largest accounting firm PricewaterhouseCoopers (PwC). Not to mention the Association of Superannuation Funds Australia and Industry Super – even the super industry, who benefit from these tax breaks, can't ignore the the inequality they create.
Join the call for thorough tax reform that focuses on Australia's future, and ends wasteful superannuation tax handouts.
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.
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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
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