- Joined
- 25 September 2007
- Posts
- 1,712
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- 13
I reckon the worst recent tax decision recently was the effective abolishment of tax on over 60 years super.
When they did this, I said to my accountant, who is very wealthy,wise (and over 60), that I thought this was totally unsustainable from a demographic and actuarial point of view, and he completely agreed.
I know it was very popular politically at the time, and probably would be political suicide for any party to repeal, but I feel sure they must do something about it.
Due to demographics, there will not be enough taxpayers left.
Having said that, they do hit them with a sneaky death duty, as the super pensions are taxed on capital gain to the dependants. ( although, if you know you are going to die, you can reduce this by various means)
I have discussed this with a few over 60's, and there response was predictable..we have paid tax all our lives etc, but I dont buy it, especially as I was looking at their Jaguars on their country mansions
my opinion there should be a ceiling for tax free over 60 super (maybe $100k)
I know I am Devils advocate here.
I declare that I am under 60, hate paying tax, currently pay a low rate, and previously paid a lot of tax, and have children
I reckon it is likely that other "wealth" taxes will be introduced, not sure how, but if you earn $1 million +, then surely you should pay more.
I use to debate (gently) with a very wealthy relative of mine, who whinged non-stop about the amount of tax he paid, while at the same time saying he would be totally unable to spend even his annual income, no matter how hard he tried. I told him, that in Japan, the top taxpayers names were published, and it was considered a matter of honour to be in the list ( dont know if they still do this)
When they did this, I said to my accountant, who is very wealthy,wise (and over 60), that I thought this was totally unsustainable from a demographic and actuarial point of view, and he completely agreed.
I know it was very popular politically at the time, and probably would be political suicide for any party to repeal, but I feel sure they must do something about it.
Due to demographics, there will not be enough taxpayers left.
Having said that, they do hit them with a sneaky death duty, as the super pensions are taxed on capital gain to the dependants. ( although, if you know you are going to die, you can reduce this by various means)
I have discussed this with a few over 60's, and there response was predictable..we have paid tax all our lives etc, but I dont buy it, especially as I was looking at their Jaguars on their country mansions
my opinion there should be a ceiling for tax free over 60 super (maybe $100k)
I know I am Devils advocate here.
I declare that I am under 60, hate paying tax, currently pay a low rate, and previously paid a lot of tax, and have children
I reckon it is likely that other "wealth" taxes will be introduced, not sure how, but if you earn $1 million +, then surely you should pay more.
I use to debate (gently) with a very wealthy relative of mine, who whinged non-stop about the amount of tax he paid, while at the same time saying he would be totally unable to spend even his annual income, no matter how hard he tried. I told him, that in Japan, the top taxpayers names were published, and it was considered a matter of honour to be in the list ( dont know if they still do this)
