Seniors outraged at super changes and removal of tax-free status

Here we go again. About 115,000 people aged between 55 and 64 who are taking advantage of transition-to-retirement rules could be

Here we go again. About 115,000 people aged between 55 and 64 who are taking advantage of transition-to-retirement rules could be hit by this new change.

Sky News reports, the government is limiting the tax-free status of retirement accounts over $1.6 million and transition-to-retirement arrangements.

From July 2017, the earnings from their super accounts will be taxed at 15 per cent, removing the tax-free status that now applies.

The government insists only four per cent of Australians are affected by the changes, and most of them are high-income earners.

But this has angered many seniors who feel that it is not fair to be taxed for the funds that they are depending to live on.

National Seniors Australia say their members are confused and some are outraged by the government’s changes.

Chief executive Michael O’Neill told ABC radio, “I don’t think it has been well sold and that’s really fed into this whole area of people now resisting, I suspect, the importance of reform,”

Council of the Ageing CEO Ian Yates said,”This isn’t the end of tax concessions, this is trimming it back.”

Retiree Margaret Kevill said, “What’s upsetting is not the amount that gets taxed. It’s the fact that they keep on changing their minds and we’re just sitting here powerless.”

What do you think?

Is it fair on the seniors? Should they stick to what they said before?

  1. Roy Bridges  

    It’s a disgrace , change the rules half way through the game and we will back date it to the start.
    They cannot keep their hands off it .
    Sick of it will not vote for either of the big party’s
    Their only interested in self interest ,never felt so sick of these people ,they just talk rubbish all the time .Not the truth ,they just try to score points off each other .

    • Ann  

      I feel if you have $1.6 million., you can afford the tax.
      Everyone wants to keep their little lurks and perks. This country needs to reduce debt to get ahead. New infrastructure, better schools, education, health system are just a few topics. Instead of whining about what is happening and vowing to give an informal vote or a vote to someone who will never get into office, talk to your local representative and see what you can resolve. Maybe you will find a good solution for all of us. Yes I am self funded retiree. Worked all of my life, no dole or health care card. I consider myself lucky to have done so, and still lucky that I have organised my finances sufficiently to not need to take from the country that afforded me my good life. Hard work still pays off with good choices and some self control.

  2. People work hard all there life to have what they want . Save for there retirement & what happens our crazy government has to be greedy . It pisses me off . People in there fifteys that have never worked all there life get government assistance plus there siblings . There children don’t know any different because there parents have never worked in there life . I think it is wrong that we have to compensate for there laziness .

  3. Gloria  

    I am disgusted in the Liberal government taxing TTR funds. I am 60 and was looking at cutting back at work and maybe assessing a bit of super. I don’t have a huge amount and want it to last. I am not one of the million dollar superannuants they are targeting and they don’t know how many people this is going to affect. They are picking numbers out of the sky. Does not matter what you do you can’t win. I hope this never gets through if they don’t have the numbers. I won’t be accessing my pension now until I know what is going to happen. If it is taxed at 15% forget it. Gee wish I was a politician I would not have to worry about the crap

  4. Judith  

    Just one point of fact, if you have over 1.6 million in super and are drawing an allocated pension, I was given to understand only the assessed income from the portion OVER the 1.6 million will be taxable. If you are receiving tax free income from a capital base of $1.6 million, then I don’t think you have too much to complain about.
    However I think the government is really trying to alienate those people who prepare for their own retirement; and I agree with Margaret Kevill, they say they want everyone to provide for themselves and not draw the age pension, but every year they make it more difficult to do just that.

  5. So, when we’re all supporting ourselves in retirement, will they drop the 7.5% that is still being collected for age pension, which is of course no longer a right? I doubt it.
    The age pension honeypot was too much of a temptation for them to keep their hands off. But now that that’s been exhausted the private pension fund is presenting the same temptation.
    We need to get rid of these corruptible parties ASAP before they bankrupt the country completely. Vote Independents & minor parties no votes for ALP LNP or Greens.

  6. Robin  

    We were encouraged to save for our old age so that we wouldn’t be a drain on the system. Now, when some have actually managed that and been pushed into early retirement, they still want the money. A lot of it, especially in the SMSF’s has already been taxed at high rates, so, in my mind, they are double-dipping.

    Obviously Malcolm has enough for his retirementment!

  7. Newton Hill  

    Seniors obviously need representation to protect their financial future. Robin is obviously right. Let us fund our own retirement and stop putting your hand in our pocket of savings Mr Morrison. Noel is also correct in having a party that is interested in looking after those that wish to be independent in retirement, not depending on the pension and having a fair system of wealth maintenance. The two major parties will not give or achieve that. Supporting a Seniors Party would give the retired and elderly, a system of government that could achieve these ends.

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