Bill Shorten appears committed to destroying Australia’s middle and aspirational classes. His latest ill-conceived attack on discretionary trusts makes this abundantly clear.
Increasing the tax on super contributions is yet another ill-conceived ‘budget fix’ idea which attempts to tax our way to prosperity.
The whole point of super is to decrease people’s reliance on aged welfare (which currently amounts to $60.7 billion of spending annually – or 1 in every 7 dollars spent by the federal government). The more super is taxed, the greater the disincentive to save and the more people will rely on welfare in their retirement (shocking stuff, I know). Given that our population is ageing and that around 80% of retirees receive a full or part pension, discouraging even more people from funding their own retirement is something we can ill afford. However, this is precisely what is going to happen, regardless of whether Turnbull or Shorten wins at the upcoming election.
Have you ever played fetch with a dog and pretended to throw the ball for the dog to chase? The first time you do it, the dog cheerfully bolts off to ‘retrieve’ the ball. Then, after about 20 metres, it stops – confused as to where the ball is. After a bit of sniffing around, it ruefully trots back to you with no idea of what happened and how the ball ended up back in your hands.
Amused by the whole affair, you do it again with the same result. However, after about the third or fourth time, the dog is on to your charade. As you ‘throw’ the ball, it now just sits there looking at you – wondering when you’re going to stop taking it for a fool and just throw the damn thing.