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NewsWhat 20,000 older Australians think tax reform should look like
What 20,000 older Australians think tax reform should look like

What 20,000 older Australians think tax reform should look like

Tags: Consumer Action Cost of Living FiftyUp Club Sticking Up for FiftyUps
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A survey into cost of living pressures for older Australians provides the Treasurer and Prime Minister with all the answers they need on tax reform.
 

Nick Rakis, 57, from Sylvania is just one of 20,000 over 50s who have joined a campaign to highlight the cost of living pressures, including the tax system, older Australians face as they retire. Like many older Australians he is open to tax reform and he believes the base for the GST should be broadened.

“Tax reform to create a simpler taxation system for people who are working and for businesses is long overdue,” Mr Rakis said.

It is these ordinary and hard-working Australians, facing retirement, who should be invited to the discussions on tax reform.

The campaign has revealed that older Australians would like a fairer tax system as they enter retirement, given saving for retirement was not compulsory in their day.

The fact is, older Australians are open to reform; Of the 20,000 older Australians who joined the campaign;

·            almost half were open to changes to the GST either by broadening the base, increasing the rate or both;

·            another 45% think tax concessions for people with large super balances should be wound back;

·            almost 4 in 5 expect to depend in some way on the age pension.

In another recent poll of 1,906 over-50s by the Club, 89% think retirees should have the option to sell the family home and downsize without affecting their pension.

“In this campaign we’ve sought to take the cost of living away from the pundits and politicians and give it to the people,” FiftyUp Club spokesperson Christopher Zinn said.

What do you think Treasurer Scott Morrison should concentrate most on when it comes to the tax reform agenda? Leave your comments below.

 

 

Originally posted on .

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What 20,000 older Australians think tax reform should look like

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Lyn
Lyn from NSW commented:

To simplify my previous comment, the sum is as follows: 18200(current tax-free amount) less ( 6000 returning to lower tax-free amount) equals 12,200 difference on which tax is paid. 12,200 X 19% current tax rate equals $ 2318 p.a. tax extra per worker/taxpayer. Times this by 11 million workers/taxpayers it equals $ 2.: 5498 billion to fill the so-called black hole of current pensioners which is supposedly a drain on our country's resources. I would have liked the current $18,200 p.a. tax-free threshold for all my working life. 

Lyn
Lyn from NSW commented:

The tax system can be fixed simply, by reverting the current $18,200 tax-free threshhold amount back to either the $ 5400 or $ 6000 tax-free threshold which existed when we seniors were working over last 35/40yrs taking it back to same level at which we started to pay tax during our working lives. From the existing, approximate 11 million workers according to ABS, about $ 2 . 5498 billion in income tax could be collected, which is the amount the 2015 Budget hoped to claw back from seniors at 1/1/17 which is now entrenched in law for changes to the part-pension. The tax differential by lowering the tax-free threshold back to $6000 works out at approximately $2318 p.annum for each employed person X 11 million to get to the rough $ 2.548 billion extra collected in tax from today's workers if they were taxed from the first $6000 p.a. ofg income as we were. 

Sydney
Sydney from NSW commented:

Australia can be in a better place if the Prime Minister and Treasurer were to introduce a bill to repel the tax laws of 1952 . Laws that are a tax haven for over seas investors can company s to pay very little or no tax to the Australian people 

Claudia
Claudia from VIC commented:

The tax system is a complicated out of control system that should be brought back to basics.I believe by making it so complicated government can make us believe it is our fault that the country is struggling and thus reaching further into our pockets. Please tell me who is paying for all the new immigrants as they are not bringing any money with them.. Government should first focus on getting Australia"s unemployment problem fixed after all we work we pay tax, then we all should have the right to retire and pass our jobs on to our children who to will pay tax. 

margaret
margaret from VIC commented:

Wondering if everyone on this site is as bigoted and nasty as some of the people who have commented here? I hope not! Cutting the salaries and perks to politicians won't do a lot - except make us all feel better! Cutting out negative gearing and raising the interest rate would be good though. I don't think that rewarding borrowers and punishing savers is very helpful to the economy; and it certainly hurts self funded retirees. 

Barbara
Barbara from QLD commented:

I think the treasurer should first and for most make all the lazy muslims who are living on our social security get a job!!!! That would save millions, they are doing nothing for the prosperity of our country, and expect the taxpayers of our country to keep them. They should also lean English so they are imployable. Instead they are picking on the Senior Aussies who have worked hard all their life ,helped make a great country, and payed taxes always. these people are trying to tear us down. They are a heavy burden on this country, please Mr Morrison do something, and get off our backs!!!!! 

Les
Les from NSW commented:

Forget raising the GST, stop the system being rorted by politicians who waste millions on unnecessary travel, expenses and retirement perks. Stop bringing people into this country who will not assimilate and stay on welfare for the rest of their lives. When sending aid overseas don't send money, purchase Australian made products and send these to help other nations. Make the multinational companies pay their rightful amount of tax instead of continuing the easy way out by raising taxes on those who can least afford it. 

david
david from VIC replied to Les:

Excellent response Les.....I fully agree with all you said re no particularly welfare for non-believers in our way of life and who do not wish to assimilate. David 

Henry
Henry from NSW commented:

forget tax reform . governments only want your money a third of taxpayers in australia are paying for the other two thirds of australians all they do is put it in one hand take more out in the other hand.The welfare mentality in this country will be very hard to stop ,they screamed about paying 5 or 10 dollars to go to the doctor a lot of votes in welfare . anyway getting back to the point all self funded retirees should pay no tax on their investments up to $75,000.00 indexed to inflation if your lucky enough to earn that and good luck to you as you have earned it. Your going to spend it and enjoy life so you will be paying a lot more tax on items than a person on a government age pension $7,000.00 in gst plus no concessions (saves government a Billion dollars a year based on the number of self- funded retiree ) , so you are still contributing a lot more TAX than a age pensioner $2500 in gst . plus all there benefits. i think their gst has just been eroded.Thats the first area i would start tax reform its simple 

Tony
Tony from QLD commented:

I am concerned that my savings accumulated in the period when the GST is at 10% and PAYG tax is higher will be spent (consumed) in a period when the GST is higher and PAYG will be adjusted lower. But if this happens after I retire my past savings will suddenly be eroded as they will buy less. 

Edward
Edward from NSW commented:

The value of the principal residence should be included in the assets which are assessed for pension qualification. 

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