Government shows its hand on super 139

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Rebecca

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In huge news, the government has come out last night and declared they will not impose taxes that would hit people drawing down on super.

Scott Morrison was captured by Fairfax media saying changes to superannuation tax concessions were possible in the upcoming tax review but indicated that the government would not impose taxes that would hit people drawing down on super.

It comes as Treasurer Scott Morrison has leaked a wider piece of suggested policy overnight that the government will very likely move forward with a plan to adopt a universal cap on tax deductions limiting how much people can claim  against their income on their tax return.  The proposal is expected to put 5 or 6 billion back into the government’s coffers which they expect will be returned to taxpayers through income tax cuts.  Sounds like they want families to get news that there will be cash back in their pockets before the next election.  But what’s in it for you the Baby Boomer and beyond?

Let me stop and break this out.  The over 55s  now make up nearly 25 percent of the population in Australia, and this move will have an ulterior impact or two that many can’t see for the political haze.  Firstly, simplification of how people can charge tax deductions may not have much impact on you at all because you may not have many years of direct earning in employment left; but nor might the income tax cuts they say could flow from the increase in revenue as you are not in a job to enjoy them.

Many post-retirement boomers, structured well, pay very little income tax as most are either living off a pension supplemented by superannuation, or living off superannuation which holds their assets in a low tax domain.  So the fear of changes to income tax structures on superannuation in drawdown phase is something everyone is watching for.

It’s clear the Government would prefer to drop a GST increase and an array of tax cuts, also aimed at middle Australia but political circumstances will probably not allow that to happen in the short term. Boomers are probably relieved at that as a GST would certainly see the cost of living rise with little chance of a rise in pensions at the same time.

Are you pleased to hear the government does not plan to grab at the incomes of retirees in this tax review?  Does this alleviate some of your concerns?

Rebecca

Rebecca Wilson

Rebecca Wilson is the founder and publisher of Starts at Sixty. The daughter of two baby boomers, she has built the online community for over 60s by listening carefully to the issues and seeking out answers, insights and information for over 60s throughout Australia. Rebecca is an experienced marketer, a trained journalist and has a degree in politics. A mother of 3, she passionately facilitates and leads our over 60s community, bringing the community opinions, needs and interests to the fore and making Starts at Sixty a fun place to be.

  1. Well if it applies to corporate tax evasion as well as to personal tax evasion that would be a good thing. But i seriously doubt it will impact Newscorp, or people like Gina and Twiggy.

  2. Tax the rich, they have more money than all of us and rort more than any of us

    1 REPLY
    • Some of us still pay plenty of tax, even when retired and receive no government handouts. I say go for the big multinationals who are not paying their share, religions who sit on some of the best real estate in the world, paid for by many poor people. This would fund the shortfall and leave the people alone. Then like householders and businesses, check the outgoings.

  3. Dont know why they’re whinging, looks like positive moves to me. Oh well, some just look for an excuse dont they!!

    3 REPLY
    • You sir, must have enough money that you do t care, we have already paid the tax on our super, and paid a tax on the earnings, so why tax us again. Please explain why you think it is ok for the government to steal our money and keep us poorer.

    • You sir, must have enough money that you do t care, we have already paid the tax on our super, and paid a tax on the earnings, so why tax us again. Please explain why you think it is ok for the government to steal our money and keep us poorer.

    • And what is more, he is apparently incapable of recognising a pre-election bribe when it is waved under his nose.

  4. Nothing is set in stone and governments change and policies change so I am not feeling any relief at all. All you can do is live from day to day and try and remain flexible to changes that affect your own particular circumstances. The only constant in life is change.

  5. People really don’t read these stories before commenting do they.

    18 REPLY
    • it appears not – the article is full of good news for Baby Boomers. Folks – make me proud – read the article

    • Read the article. Just not impressed. Lots not being said here. But if your opinion is that easily bought…..

    • Read the article. Just not impressed. Lots not being said here. But if your opinion is that easily bought…..

    • Good news !!There is no good news from this government .. Starts at 60 super is taxed.. Check your statements. It shouldn’t be taxed at all ..

    • Good news !!There is no good news from this government .. Starts at 60 super is taxed.. Check your statements. It shouldn’t be taxed at all ..

    • Some people have such closed minds about the Turnbull Govt they won’t acknowledge policies that are good for them…..surely the definition of Bitterness !!

    • Some people have such closed minds about the Turnbull Govt they won’t acknowledge policies that are good for them…..surely the definition of Bitterness !!

    • Ian Sutton it may have escaped your notice, but this government is planning on calling an early election. They need votes. They know that the over-60s are by nature a conservative voting bloc and they also know that they have, as a result of their policies, made that bloc inclined to rethink its position. If you are so easily bought that you uncritically welcome this move then it is unfortunate. I would like to imagine that retirement offers an opportunity to re-examine the assumptions on which we have based our lives and to critically analyse the performance of our leadership. There is nothing the LNP has done that is in Australia’s interests. Nothing. And Labor has been playing tag team on some of their most invidious actions. I suggest you take some time and examine your own assumption sets and determine whether your vote is going in your own interests. I seriously doubt it, unless you are particularly wealthy.

    • I read the article and why would I believe these liars about anything? this is repeat of the last election, tell them lies to get people to vote for you, the after they get into Government they will change their minds

      1 REPLY
      • Uncontrollabe lies and deceit are central to this Govt’s DNA. Anyone who falls for their contemptible disdain for us over-60’s, and votes for them, should be ashamed for the treatment that awaits us all, should they be re-elected.

    • What are they lying about Rosalind Battles, it would be good to put some substance behind your theory. Of course you could just be a Labor mouth piece, if so I understand, it wouldn’t matter what they said you’d still complain.

    • You are insulting Noel Hawes, which is why so many people have blocked you but you might want to read these election promises ,made before the last election, this and something similar to this will be all over the net before the next election..get used to it 🙂 never assume the left are as ignorant as you

    • We don’t know what they’re lying about Noel, all we can do is go on past behaviour, so we have to assume they’re lying about everything. Leopards don’t change their spots

    • Jo Bain I would like you to tell me what it is you would like the Govt to do. Is repairing the $40B debt costing us $1B/month important to you, Are the tens of millions of extra export dollars thru Free Trade Agreements important ? What about setting the country on an innovative/international competitiveness footing ? If the economy is in the toilet what responsibly do you personally want ?PS you don’t know they are going to an early election no one does at this time, your argument won’t be won if you shape the truth to suit your point of view !!

    • Starts at 60 I find it curious that SAS seems to be instructing us as Baby Boomers as to what we should think and even what resulting comment they as editors wanted from us.

    • Rosalind Battles : Or there will be no carbon tax under a government I lead – you forgot that one, or how about the MRRT that raised no money. And you reckon I’m insulting: pot-kettle-black.

    • Oz Robpittman : I’d be the last to defend SAS, as I feel they are very left of centre on most things, but they do, in many cases, reprint an article from another source – we are always able to read between the lines and put our own view – opinion. I don’t think they ever tell us what to think.

    • Noel Hawes you forgot the rest of Gillards sentence, which was, ‘but I am determined to put a price on carbon’ Compare that to Howards’ ‘there will be no GST under any government I lead’, or Abbotts promises as per Rosalind’s meme. Every promise Abbott made, he broke

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