The Australian website has been running as its headline article a David Crowe report that would not keep the Abbott government happy at all. The subheading:
WORKERS will take a $20,000 hit to their retirement savings from a shock deal in the Senate to repeal the mining tax, with the Abbott government blaming Labor for forcing it to agree to the change. The losses could reach twice as much for young workers on high incomes, according to an exclusive analysis for The Australian that reveals the impact on millions of employees who will miss out on an increase in their superannuation over the next five years.(Of course, the paper also contains a "You're Magnificent, Abbott!" piece by the ever obsequious Denis Shanahan about the very same deal.)
But over at Fairfax, we have Peter Martin talking up the decision to not increase the tax contributions because it was clearly going to eat into salary growth too much. With the headline "The Coalition helps the workers", the Martin article takes exactly the Abbott line on the issue.
It will be some time before I know what to think about this....
4 comments:
Steve,
It depends on whether you are looking at the short or long term.
in the s/T they will gain as the SGC does not rise and thus they get s Peter Martin says but in the long term they will have much less retirement savings as the earlier article says.
Simple Super as introduced by Peter Costello has had the unintended consequence of moving capital into low or zero taxing environments. The govt thought that Simple Super would free them from providing welfare to retirees. What it has done is to immediately reduce revenue to govt and retirees are using super to pay off large mortgages then going onto welfare. This latest move is a small step to reducing or unwinding Simple Super.
rog
Penis Shagabag??
Sorry, I've got a cold.
I think you might need to ease up on the pseudoephedrine, Dave...
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