Greens propose new super tax regime

The flat tax of 15 per cent on superannuation would be replaced by a regime from zero to 30 per cent under a Greens proposal.

The Australian Greens say the government could reap more than $10 billion by hiking tax on high earners' superannuation while lowering the rate for the lower paid.

Greens leader Christine Milne has proposed a new superannuation tax regime which would remove the tax on super for those earning up to $19,400.

The next bracket of earners up to $37,000 a year would pay only four per cent.

Those earning between $37,001 and $100,000 a year would pay 15 per cent - the current flat rate.

But the rate would rise to 22 per cent for earners between $100,001 and $150,000, while the highest earners would pay 30 per cent.

"The super wealthy in Australia are avoiding hundreds of thousands in tax using superannuation loopholes," Senator Milne said on Thursday, adding it was people on lower incomes that shoulder the burden.

Everyone deserves a comfortable retirement," she said.

"The superannuation system should look after people on low and middle incomes, too, not just the wealthy."

A Parliamentary Budget Office costing shows the policy would return $10.16 billion to the federal budget over the next four years.

It would mean a part-time worker on $30,000 a year would have an extra $500 a year in their super, retiring on about $330,000.

A worker on $200,000 a year would retire on about $1.6 million in savings.


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Source: AAP


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