Financial Standard Comments - Super concessions cost $32bn in 2011-12

Comment by Stockholm Syndrome (Beat Me Up)

Stockholm Syndrome (Beat Me Up) — Fri, 01 Feb 2013 13:11:00 +1100

I guess we should be glad they don't steal it all.

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Comment by kym just (kym just)

kym just (kym just) — Fri, 01 Feb 2013 15:32:58 +1100

To refer to 'Superannuation tax concession costs" as costs is a complete fabrication of the truth. What is really meant is that instead of taxing the income earnings at marginal tax rates the contribution tax is only taking 15%. If there were no concessions for placing money into superannuation then Canberra would manage to get their hands on far more income in the short term. My understanding was that these tax concessions were implemented to provide an incentive for the average person to place money into their superannuation to allow for some degree of income in their retirement rather than rely on the age pension. The average government in this country has a forecasting plan that resembles the amount of time that they are in power before the general electorate actually wakes up to the lies and deceit and eventually throws them out. DO US ALL A FAVOUR AND DON"T KEEP CHANGING THE SUPERANNUATION RULES!

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Comment by Phil ilp (An Industry Fund)

Phil ilp (An Industry Fund) — Fri, 01 Feb 2013 16:50:22 +1100

Kym I agree with you and you're right for the most part. But to say there is no cost may not be completely accurate either. I guess where it can become a cost is if the forgone income from the tax concessions becomes greater then the expense of government pensions.

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Comment by Trudi Bell (Fed up)

Trudi Bell (Fed up) — Fri, 01 Feb 2013 18:23:33 +1100

I am fed up with the non-stop tinkering with super! As a recent retiree I depend on my super savings to cover my living expenses for the next 25 to 30 years. I need certainty and not having to worry whether I will still be able to pay my bills next week!

Surely, after working for more than 45 years, raising four kids as a single mother and sacrificing lifestyle to put money into super and thus disqualifying myself from being eligible for the age pension, I DESERVE PEACE OF MIND!

As to lump sum payments, as certain as night follows day, there will be times in the next 30 years when I will need to draw down a lump sum to cover major household expenditure, I need to be able to draw down the money and without being penalised for doing so!

If super money is taxed at the same rate as other income or with a reduced concession, there is no point of saving within super for retirement as there are far better investment vehicles available without the heavy regulation super is subjected to. This also applies to retirees, as it appears that taxation will be extended to retirement earnings and withdrawals as well.

Furthermore, because nasties such as this are dumped on us on budget night and effective just prior to the announcement, it makes me rather nervous and I am increasingly inclined to withdraw all of my super savings before May.

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