Published: 13 Jan 2021
A secret plan to tear up compulsory super by making the increase to 12% optional would be a $20,000 tax grab on the average Australian family that could also leave them with up to $200,000 less super by retirement.
Reneging on the legislated super guarantee increases would rip billions out of the pockets of workers to be funnelled into government coffers via higher taxes.
Wages are taxed at a higher rate than super contributions leaving little for workers once the tax office takes its cut. ISA analysis shows that up to two-thirds of an increase could be lost in higher taxes and reductions in other government support payments.
Figures from the Government’s own Retirement Income Review reveal an opt-out plan, like the one media has reported the government is considering, would leave all income groups worse off - with lower lifetime disposable incomes.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.