Older Australians should pay their fair share of tax
The Australian taxation system has a number of aged based concessions that see young people foot the bill, and older people pay less tax than they should.
Review aged based tax concessions
Only one age cohort takes significantly more from the system than it puts in: people older than 65.
In 2015 superannuation, CGT discounts and negative gearing cost the budget $37bn. $20bn of this was claimed by over 50s.
Every dollar claimed as a concession denies the budget bottom line. Young people are paying more and getting less from their tax dollars.
Think Forward calls on the Federal Government to review aged based tax concessions to ensure young people aren’t subsidising tax breaks for wealthy retirees.
Support young Australians to maintain their superannuation momentum
On average career breaks cost women around $160,000. Maternity leave and childcare were the biggest reasons for career breaks.
Australians had on average 3.4 career breaks each - representing a problem that spans across all genders and generations.
Think Forward calls on the Federal Government to support young Australians who start families, start companies or pursue further studies to maintain and grow their super balances.
Overhaul superannuation taxation
At the moment everyone pays a flat tax of 15 per cent (regardless of how little they earn) on superannuation earnings until they retire (after retiring no tax is paid at all on super withdrawals).
This means lower-income earners and younger people have to pay more in taxes while wealthy retirees massively minimise their tax.
The top 10 per cent by income of over-60s drawing down on their super pay no tax on their average super earnings of $85,000 a year. So younger wage earners on $40,000 a year are paying far more tax than retirees do on much higher super incomes.
Think Forward calls on Federal Government to review how superannuation is taxed and find different way of taxing superannuation so that everyone pays their fair share of tax.