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April 20th, 2012 
FAKE NEWS for the Zionist agenda
Sally Patten and
Jennifer Hewett
The federal government is planning to reduce tax concessions on superannuation but only for very high income earners, as part of its struggle to get the budget back into surplus.
Labor believes it can politically sell changes that will affect less than 1 per cent of taxpayers but save several hundred million dollars over four years, according to industry sources.
The changes will mean that the highest income earners will no longer be eligible for the 15 per cent tax on their super contributions.
These people will still get a concessional tax rate on the $25,000 annually that everyone can put into super pre-tax but one that is worth less.
The political risks of tinkering with super rules yet again have been overruled by the government’s even great political need to deliver its promised surplus.
Canberra will promote its determination to protect the interests of the majority through a budget surplus against cutting benefits for a tiny percentage of the very rich.
But the industry has lashed out, arguing any such move is short-sighted and discriminates against future generations. Super funds, fund managers and financial planners have called on Treasurer Wayne Swan to rule out any changes to super, including reports he was considering raising the tax rates on contributions and on earnings inside a fund.
They are concerned that further tinkering will further diminish confidence in the system and lead to a reduction in Australia’s savings rate.
“This is the most destructive thing I have seen in a long time,” said Association of Superannuation Funds of Australia chief Pauline Vamos, who fears that changes to the contributions or earnings taxes will lower the level of voluntary injections into super or, worse, encourage workers to become contractors as the 9 per cent super guarantee does not apply to the self-employed.
Financial Services Council chief executive John Brogden added his concerns. “This is neither in the interests of saving Australians nor in the national interest,” he said.
“Any savings for the budget through reducing concessions in superannuation would be far outweighed by costs borne in future budgets.
“Such changes would trade small, short-term gains for this budget for massive, long-term costs for future budgets and future generations.”
The timing is controversial because the government has just raised the super guarantee to 12 per cent, arguing it is critical for Australians to save more in order to enjoy a more comfortable retirement and reduce the burden on the public purse.
But the sheer size of the savings task required ahead of the budget has meant that no area of spending or tax concessions has been off limits, including the huge $30 billion of tax concessions available in super.
Treasury has long argued that these concessions needed to be wound back, after former treasurer Peter Costello declared that superannuants would be removed from the tax system.
The government has also recently been emphasising equity issues in other reforms such as aged care.
The row comes as the average balanced super fund has posted a 2.3 per cent rise since July last year. The March quarter was particularly strong after SP/ASX200 surged 8.6 per cent.
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