What could the government have done to make the budget fairer? “I’m in favour of tightening the eligibility for pensions, but you should increase the pension payment for the people who remain, pay bigger pensions.
“And at the same time you look at pensions you have to look at superannuation tax concessions. It’s heavily skewed in favour of wealthy people.”
To get a $100 benefit from the superannuation system, a person with a modest income of $20,000 a year must put in $118, he says. A person on $250,000 a year must put in only $62.50 to get a $100 benefit.
“That’s a staggering inequity. If you had a more broad-based approach”, dealing with both welfare reform and reform to the generosity of tax concessions for the rich, “you’d have a much more defensible position”.
Sunday, 22 June 2014
John Hewson has an interesting point on Superannuation
In Tony Abbott choked by lack of vision, not ideology Peter Hartcher interviewed John Hewson about the recent budget and Tony Abbott's performance. He made an interesting point about Superannuation: