Sussan Ley is back.  This time she asks:

Under Labor’s superannuation tax policy, Australians are forced to find cash they don’t have to pay tax for income they haven’t earned Prime Minister, it takes a lot to unite Paul Keating and John Howard but both are totally against this unfair tax.

Will the Prime Minister abandon his plans to work with the Greens and instead join me, the crossbench, Paul Keating and John Howard to reject this unfair tax?

 

This is sigggghhhhhhh. 

As Greg Jericho has pointed out numerous times:

We have a system where it is considered right that the poorest people in Australia are penalised if their assets go above $314,000 but where parts of the media come out against a proposal that if someone’s super goes up $314,000 in a year from $3m they should pay $4,462 (1.4%) in tax Please. The only reason there is so much outrage over this is if the rich and vested interested are annoyed people might realise just how big of a rort they have going.

Currently these massive unrealised capital gains in super can keep going up and people pay no tax on them (unrealised, you see!) and then when they are retired they can sell them (ie realise them), and then pay … errr zero tax.

Under these changes they would have to pay 15% on the share of earnings above $3m.Yeah, end of times.

Heck even normal capital gains outside of super gets a great deal.

If you have held an asset for over a year you will get a 50% tax discount on the profit.

Earn $250,000 in capital gains, you get $125,000 tax free.Earn $250,000 in income, you get $18,200 tax free.

Little wonder the rich love capital gains. The 0.2% of taxpayers who make $1m each year account for 41% of all capital gains: