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.

 

[peetoo]

Insight on boomers on insight tonight.

Made me think. Albo is almost gen x and Dutton certainly is

 

[Kanga Commando]

Insight on boomers on insight tonight.

Made me think. Albo is almost gen x and Dutton certainly is

Was that the episode where they were trying to have a go at SKI boomers ?
( as opposed to giving it to kids )

I dont mind the boomers spending the money they have - as long as they dont ask their kids or society to fund them a comfortable aged care life. My MIL is angry at the world because she’s in aged care that doesn’t befit her lofty standards. She retired and took business class trips to Europe, cruises, moved house etc… ( she’s not living with us BTW because she’s really a monster in-law ) Sorry to say, she made her bed, now lie in it.

On the same thought though, my own, and wifey super, will be maxed out for the next 5-10 years prior to my retirement. I dont want to rely on the government for my care because they are not that good at it.

 

[peetoo]

Was that the episode where they were trying to have a go at SKI boomers ?
( as opposed to giving it to kids )

I dont mind the boomers spending the money they have - as long as they dont ask their kids or society to fund them a comfortable aged care life. My MIL is angry at the world because she’s in aged care that doesn’t befit her lofty standards. She retired and took business class trips to Europe, cruises, moved house etc… ( she’s not living with us BTW because she’s really a monster in-law ) Sorry to say, she made her bed, now lie in it.

On the same thought though, my own, and wifey super, will be maxed out for the next 5-10 years prior to my retirement. I dont want to rely on the government for my care because they are not that good at it.

They seemed a bit vacuous with no empathy for the other boomers who were doing it tough

I suspect behind that they’ve helped their kids plenty though

It was interesting to hear from the guy who got burned trying to supercharge his super by putting it all into property. All we seem to hear about is folk doing super well out of property

I’m no investing wiz but if your wealth is your house (property) and super, diversification tells you not to favour property in super

 

[Bunk Moreland]

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

The Liberals despise super and will weaken it at any cost. It’s purely an employer cost for them.

 

[peetoo]

Just on super. Today we are cashless and the expectation is if a transfer happens, it’s the same day.

Was looking at my super and when a dollar goes in and out (preferably with a few decades between) it spends maybe 14 days total ‘somewhere’ not in your super, you employer account or your bank account

Something like .002 in value if earnings are 6%

Over a $500k account. And for whoever’s to getting the interest benefit, it all adds up. Yet another scam

 

[Captivating]

Just on super. Today we are cashless and the expectation is if a transfer happens, it’s the same day.

Was looking at my super and when a dollar goes in and out (preferably with a few decades between) it spends maybe 14 days total ‘somewhere’ not in your super, you employer account or your bank account

Something like .002 in value if earnings are 6%

Over a $500k account. And for whoever’s to getting the interest benefit, it all adds up. Yet another scam

The employer doesn't have to play super straight away. For example, employers have to make payments on super accrued from 1 April to 30 June by 28 July.

1 April – 30 June

28 July

From July 2026, PayDay super comes in which fixes this.

 

[peetoo]

The employer doesn't have to play super straight away. For example, employers have to make payments on super accrued from 1 April to 30 June by 28 July.

1 April – 30 June

28 July

From July 2026, PayDay super comes in which fixes this.

I think my employer does according to payslip. Anyway nothing to do with the 4 days or so on the way out of super in a ttr account

 

[Golden_6]

The employer doesn't have to play super straight away. For example, employers have to make payments on super accrued from 1 April to 30 June by 28 July.

1 April – 30 June

28 July

From July 2026, PayDay super comes in which fixes this.

I think he’s referring to the time clearing super payments take place. Quite often it will take a week for a payment to ‘clear’ into a super funds bank account despite it having already left another bank account.

 

[peetoo]

I think he’s referring to the time clearing super payments take place. Quite often it will take a week for a payment to ‘clear’ into a super funds bank account despite it having already left another bank account.

I’m sure there’s extra checks with super, but the punters are losing out. Especially on the way out.

You nominate how much and when in the account. Surely it can be checked prior

 

[Captivating]

I think he’s referring to the time clearing super payments take place. Quite often it will take a week for a payment to ‘clear’ into a super funds bank account despite it having already left another bank account.

Probably between employers account to clearing house to super fund and then member account.

 

[TheEscapeClub]

And how much has your house (not an investment vehicle) appreciated over your life time?

A good and simple measure would be to included houses in pension asset tests. That would help the budget and increase housing supply.

If they're not selling it what does it matter?

A home is a home no matter if it's worth $250,000 or $5,000,000.

Youngsters have been brainwashed by the media telling them to blame someone.

I would say in most instances a home for older generations is a utilitarian possession, or, it serves a purpose, for younger people it's the money.

Oldies blame dole bludgers, younger people blame pensioners we should all be blaming crooked politicians and money grabbing corporations.

 

[peetoo]

Yeah gen x own houses. Anyone in a house in certain suburbs for 10-20 years would be going OK even though super guarantee levy is not thir whole work career .

And what of the people in areas where property has stagnated? Expected to sell during a slump?

 

[CakeEater]

The employer doesn't have to play super straight away. For example, employers have to make payments on super accrued from 1 April to 30 June by 28 July.

1 April – 30 June

28 July

From July 2026, PayDay super comes in which fixes this.

Also hurts cashflow of businesses and will cause prices to go up.