March 03, 2023
Which Australian workers hit hardest by Super changes?
Young Australians, who will be hardest hurt by Labor's plan to double tax rates for people with super balances exceeding $3 million, are concerned about the proposed changes to superannuation. Since inflation is currently at 8%, $3 million will be worth less in the future, and many young Australians would require more than $3 million in super to live comfortably in their retirement. A retiree may have $50,000 less per year to support themselves in retirement as a result of this tax reform, and they may end up paying $700,000 more in superannuation taxes over the course of their career. The government should cease changing the goalposts for superannuation and completely scrap its proposed adjustments, while indexing all tax thresholds to inflation to prevent bracket creep.
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