“Unfair tax breaks for superannuation are becoming unsustainable and fair reform is needed,” said Mr Bandt.
“People deserve a tax break when they contribute to their superannuation, but by making the tax breaks less generous for higher income earners we can save $11bn to fund schools and hospitals.”
“The Greens would make the superannuation tax system more progressive by more closely aligning it with the income tax system.”
The Greens proposal is for progressive tax rates on superannuation contributions in accordance with the table, with a government co-contribution for individuals below the tax-free threshold ($18,200) of 15 cents for each dollar of concessional superannuation contributions.
Under the Greens’ proposal, someone earning $18,000 (under the tax-free threshold) whose employer is contributing the legal minimum in super contributions would no longer pay any tax on their concessional superannuation contributions and would receive a government co-contribution of about $257, leaving them better off than under the current system.
The Parliamentary Budget Office has advised that this would improve the fiscal balance by $10,890m over the forward estimates.
Wednesday, June 1, 2016