Taxing concessional superannuation contributions progressively is one of the recommendations of a report into Australia’s retirement income system.
The report, The Entitlement of Age, was written by Emily Millane, “Per Capita’s principal research fellow working on the Longevity and Positive Ageing project”.
According to Millane “Australia’s retirement income system is becoming unsustainable”, though this is “not because too much money is spent on the age pension”. Instead it is because “the proposals currently in the budget will make the pension inadequate, and the retirement income system more regressive”.
This is exacerbated by increasing life spans, with the analysis by Per Capita showing that “Australian life expectancies have consistently outstripped official projections due to rapid declines in mortality”. According to the report:
“A comparison between average life spans and official projected life expectancies using steady mortality rates produces a difference of approximately 8 years for men and 12 years for women.”
Read More »Tax super contributions progressively, says Per Capita