I think most people forget that ALL funds held in Super over the $1.6 million cap are now taxed at 15%, so there is no free ride for those people. Every dollar thats made on funds above the $1.6 million cap are taxed at 15%, this includes rents, bank interest, dividends, franking credits and capital gains. Capital Gains are taxed at 15% unless held for more than 12 months, which is taxed at 10%.
Funds held in the tax free pension stage ie up to $1.6 million would in most cases only return a yield at best would only equal an old age pension. Its the old age pensioners who have NO Super who are costing the country, its not the self funded retiree who has to support themselves. These self funded retirees get NO free medical, NO reduced Council Rates, NO free State rail transport etc etc.
The self funded retiree pays the full bill when visiting the Doctor ( less medicare refund) and pays the full price at the Chemist for prescriptions.
The wealthy retires who have more than $1.6 million are already paying 15% tax on all earnings since 1st July 2017. So I consider this is fair, as they have chosen to save their money to live a more comfortable life. AND why shouldn't they?
They have most likely worked hard and saver and placed the money into Super and bought BHP shares so that they're not dependent on the Australian Tax payer in their old age.
They're still paying far more tax than the old age pensioners who are sucking on the public tit, and most likely were on welfare for a good part of their lives.
BHP Price at posting:
$37.69 Sentiment: Buy Disclosure: Held
(20min delay)
