Australias tax system takes from the young to give to the old

[Demonic Ascent]

I'd rather see work done in structural reform than nibbling around the edges on stuff like franking credits, which is just ensuring people don't pay tax twice when they should pay tax only once (on income).

Or ensuring people receive refunds on money they haven't spent.

 

[peetoo]

There is disparity in wealth among ‘baby boomers’ look at average super balances at age 60. All I can say is thank god some of the median people do have property, cos super balances aren’t cutting it alone.
But house paper values vary on location. What might seem a fair tax on capital in the best bits of Sydney might be unfairly punitive in cheaper areas. Try putting in a system to be ‘fair’ there

If you are a wage earner today, your 40-50 years of over 10% super on your wage might be more key to your prosperity in final years than the property you weren’t able to buy. Even though you earn more in the second half of your career and contribute more, the compounding on super contributions-the first half will probably be more

Had current boomers about to retire (65) had 40-50 years on 10% SGL not 20-25, the median might be 400-500k not 200k

All the focus is on property not this.

What's the average Aussie superannuation balance at age 60, 65 and 70?

The average super balance for a pre-retiree might shock you.

www.fool.com.au

Also from these figures, the increase of median super balance from t0-65yo of 183k to 70-75yo of 214k is just 30k
Median of 361k at 60-64 and 481k at 70-74 is a whopping 120k
Clearly some boomers have huge super balances and never run the totals down.

OP clearly talks about wealth disparity between young people, but somehow boomers are a single wealthy block?

 

[peetoo]

There’s clearly going to be huge transferences of wealth as the boomer generation dies off. Politically it’s too late to do death taxes, but that transfer with excacerbare wealth differences among younger generations.
Maybe tweaks here would be politically palatable.

But not from the liberals I guess. Their main push seems to be letting poorer groups spend their super younger, which cleaearly is not a equaliser

 

[nut]

There’s clearly going to be huge transferences of wealth as the boomer generation dies off. Politically it’s too late to do death taxes, but that transfer with excacerbare wealth differences among younger generations.
Maybe tweaks here would be politically palatable.

But not from the liberals I guess. Their main push seems to be letting poorer groups spend their super younger, which cleaearly is not a equaliser

A lot of the boomers wealth is being absorbed by Johnny Howard’s aged care centres…

Work all your life, retire, enjoy a few years and then give all your money to aged care facilities.
What a society we are creating.

 

[Number37]

• capital gains on equity or rental properties faces half the tax rate as wage income.

Taxable income includes capital gains.
Taxable income is paid at a taxpayers marginal tax rate.

There is no such thing as the capital gains tax rate.

Tax is not used for govt spending. Tax is only used as a tool to control inflation or to discourage certain activities (eg, smoking).

Where does all that tax go if it is not used for govt spending. Do tell.

 

[Demonic Ascent]

Taxable income includes capital gains.
Taxable income is paid at a taxpayers marginal tax rate.

There is no such thing as the capital gains tax rate.



Where does all that tax go if it is not used for govt spending. Do tell.

To pay off the loans from the RBA that government uses for spending? Effectively the same thing.

 

[Seeds]

There’s clearly going to be huge transferences of wealth as the boomer generation dies off. Politically it’s too late to do death taxes, but that transfer with excacerbare wealth differences among younger generations.
Maybe tweaks here would be politically palatable.

But not from the liberals I guess. Their main push seems to be letting poorer groups spend their super younger, which cleaearly is not a equaliser

Why is it politically too late to do death taxes? Its more vital now then its even been.

Although wealth taxes do also tax inheritance. So you can bypass the political debate around death tax by going straight to wealth taxes which are the same thing.

 

[Seeds]

I'm about to turn 64, so when does the Tax System start giving me some of this money they are taking from the young?

If you have wealth it already is by not taxing that wealth and forcing workers without any wealth to pay high income taxes to compensate for not taxing your wealth.

 

[Syd]

If you have wealth it already is by not taxing that wealth and forcing workers without any wealth to pay high income taxes to compensate for not taxing your wealth.

Define ‘wealth’

 

[peetoo]

Privatised wealth tax system

Baby boomers will be asked to fork out more than ever under controversial aged care reforms

Three years after a bruising royal commission exposed substandard care leading to neglect and abuse in nursing homes, elderly Australians may be asked to fork out more money than ever before, writes Anne Connolly.

www.abc.net.au

 

[Seeds]

Define ‘wealth’

Assets and cash that you own.

We already have wealth measures. The pension test is based on a wealth measure.

 

[Syd]

Assets and cash that you own.

We already have wealth measures. The pension test is based on a wealth measure.

I understand that Assets and Cash count towards 'wealth'

What I was wanting was to know specifically at what point your 'wealth' counts against you.

I am still being forced to pay higher than usual taxes apparently but because I have 'wealth' I am also not paying tax.