In the financial review this past weekend the headline was Labor plans D.I.Y. crackdown; Lets have a look at Labors record on so called reform Since 1983 successive Labor Governments have "reformed" superannuation benefits by increasing Federal Govt. tax grabs on superannuation benefits from almost no tax at all (in 1983 just 5% of a lump sum was taxed at the members marginal rate i.e. a maximum of 2.5%) to where it is taxed now by 15% on contributions going in, plus 15% the on income each year before retirement. It is interesting to note that all the present super taxes are Labor taxes and that this is the party that says "we represent the workers". These are the same people that constantly bleat about the social inequity of financial planners gaining commissions for advice which average less than 2% a year. Since taking office in 2007 their "reforms" have reduced the maximum deductible/concessional contributions to superannuation from $100,000 to $25,000. The initial co-contribution scheme to assist low income earners was also first reduced from $1500 to $1,000 and now stands at a measly $250 with a so called reward of a 15% rebate on super balances that when you have almost nothing gives you pennies. The removal of the indexation of contribution caps since 2007 in the deductible, non deductible and the co-contribution arrangements further erodes the pool of money that can be directed to fund a genuine independent retirement that is free of the centre link snakes and ladders. It is clear our social engineers aka the hard labour mob plan is to make all retirees dependant on Government handouts, i.e. miniscule pensions so they have total control from the cradle to the grave. In today's AFR page 4 we have the CPA accounting body advocating that lump sums be abolished. Of course SMSF's who represent 7% of all individuals hold 31% of all super 480 billion dollars. Clearly they want to get their sticky fingers in our pie when we retire so they can "help manage it into further fees and charges. What is needed is a genuine SMSF lobby group that can kick a few heads. Spread across all the electorates there are roughly 6000 votes in each seat that could be used to target pollies. Kind Regards non recourse
