Join the calls to reform Super Tax Concessions
Not only are the potential savings on Super Tax Concessions powerful enough to sweep away the bulk of Mr Hockey's austerity cuts, they were named in the Tax Paper as as fundamentally unfair – paid out disproportionately to higher income earners, while those who need them most miss out.
The report has led to an improbable media storm on tax policy: everyone, from social service organisations and the Greens, to business groups and shock jock Alan Jones, are calling for Super Tax reform. But Mr Hockey has said he won't move unless Australians stand up and demand it.
So, ask yourself: would you rather powerful revenue-raising reform that makes our tax system fairer, or austerity cuts to essential services? Join the campaign to fight for fairness in this year's Budget by calling for Super Tax reform.
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.
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
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.
We need 3,063 more