The AGE argues in its recent editorial that Malcolm Turnbull should stick to the government's proposed superannuation changes and finally end such an egregiously unfair law.
Rules in our superannuation system that have been exploited by the wealthy to become even richer at the expense of the bulk of taxpayers have undermined the national claim to decency.
Consider this: there are numerous idle rich people in Australia who live off family trusts and other income from inherited wealth and who pump money into superannuation at a concessional tax rate of 15per cent and then withdraw it tax free after the age of retirement.
It costs the budget a fortune, thus crimping resources for necessities including hospitals, schools, roads, public transport and support for the needy and vulnerable. All of which is why The Age has consistently advocated change - and thus strongly supported the proposals announced by the Coalition government in the budget in May. And all of which is why we urge Prime Minister Malcolm Turnbull to politely but firmly reject pressure.
In essence, the changes simply limit the amount that can be accumulated at a tax rate far lower than that paid on income. Associated proposals make superannuation more attractive to lower income earners, and to women who have interrupted their career to be the primary carers for their children.
The crux of the attack on the changes is the assertion parts of the package are retrospective. And retrospectivity is indeed anathema. But, without going into the intricate details, we hold that the claims cannot be substantiated and rely on an unreasonably broad definition of retrospective.
We urge Mr Turnbull to have the courage to rebuff the recalcitrants and to finally end such an egregiously unfair law.
