As I'm sure you remember HelloU, I am in agreement with you on the increasing burden that zero tax rates adults will place on the system and I'm certainly in favour of taxing super withdrawals[at a concessional rate, to reflect tax paid]
A while back, I suspended actions to mitigate against the effect of the proposed changes.
I increasingly feel that the politics of the measure are turning against it.
JonnoH will drag out his 8% number[I actually think it will be less than that], but politically , the risk for the ALP is that this 8% will overwhelmingly vote with their hip pocket, and the 92% wont care enough , or understand enough about it, for it to be a vote changer.
So, if the polls tighten, what can they do? Because this is their biggest electoral vulnerability in my opinion.
They must have done the sums properly by now, and realise that the PBO figures don't wash[apart from a few diehards like Jonnoh]. So, if there is little money to be gained, is the favour to big funds enough of an incentive for the political pain likely to be involved.
Options might include , a 5 or 10 k threshold, or heaven forbid, grandfathering.
Total reversal of the policy probably not going to happen, too much face lost.
Expand
