New tax in place of compulsury super

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eddy
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New tax in place of compulsury super

Post by eddy »

A lot of Australians will depend on the pension as their compulsory super is insufficient and as people do not know how much they need as they do not know how long they will live I suggest it be abolished and replaced with a 10% extra tax.

At present it is only supporting the financial industry where if it went into the federal government not only could it pay the future pension but invest in Australian infrastructure creating more aussie jobs.
Last edited by eddy on Wed Feb 22, 2023 4:58 pm, edited 1 time in total.
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Re: New tax

Post by boronia »

Would you really trust the Government to look after your super wisely?
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Re: New tax

Post by simonl »

No. Clamp down on double dipping.
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Re: New tax

Post by eddy »

boronia wrote:Would you really trust the Government to look after your super wisely?
I would trust them a lot more than the financial shonks that operate like a casino.

At least the money would stay in Australia creating jobs here rather than investing in sub prime houses in America etc.
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Re: New tax

Post by boronia »

The government would simply set an investment organization similar to a private super fund. There is no guarantee that it would be any more efficient or profitable.
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Re: New tax

Post by Lt. Commander Data »

eddy wrote:
boronia wrote:Would you really trust the Government to look after your super wisely?
I would trust them a lot more than the financial shonks that operate like a casino.

At least the money would stay in Australia creating jobs here rather than investing in sub prime houses in America etc.
And who says the government wouldn't invest in something like sub prime houses in America...?
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Re: New tax

Post by eddy »

Lt. Commander Data wrote:And who says the government wouldn't invest in something like sub prime houses in America...?
They would have to have rocks in their head if they did as investing in Australia would not only save dole money but get extra tax from those who would have a job catching up on our backlog of infrastructure.

The best way is to go 50/50 with private investment to make sure we did not do any more crazy insulation or BER schemes.

One thing I do have my doubts about is the NDIS because nobody will be allowed to smoke, drink beer, play footy, ride a bike etc.
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Re: New tax

Post by Looselion »

These are all valid considerations, but the politicians never address the fundamental cause of our organically compounding debt and budgetary malaise, which will continue to drag us into the abyss year upon year.
Remember how Howard promised that all our troubles were over when he slyly introduced the 10% GST. That happened only 16 years ago, and already we’re in worse fiscal shape than we were then.
The endless debates and hand-wringing around the issue of tax collection and distribution, as if this is of itself the nub of the problem, is nothing but a crafty diversion from the main game, and people like PM Turnbull, himself an ex-merchant banker, by ignoring the base problem briefly explained below, are hypocritical and disingenuous in the extreme.
The problem lies in the inherent flaw in our monetary system, which guarantees that we are all trapped in an endless debt spiral forever. Under the current ‘system’ the value of our money (and thus the buying power of our wages and the Government’s tax collections) is deliberately reduced by controlled inflation, by around 2.5% every year.
This mandatory inflation level is critical to support the process by which money is created in our economy, which is in effect a giant government sponsored and licensed ponzi scheme. More than 95% of the money (capital) in circulation in Australia (and every Western society) has been created by the banks as debt on their books. When someone applies for say, a housing loan or a car loan at a bank and the loan’s approved, the bank in effect creates the money out of thin air by electronically crediting the principal amount into the borrowers a/c with a few keyboard strokes.
At the same moment the borrower’s a/c at the lending bank shows the amount as debt plus interest in favour of the lending bank.
Note that the monies circulating around and sitting in bank a/c’s have mostly been created in this way. The whole economy runs on this ‘e’ money, with the exception of the comparatively meagre number of actual cash currency transactions being conducted less and less by Australian citizens.
Here is where the insidious fault in an otherwise perfect system (for the banks) becomes obvious. Because nearly all the money in circulation began life as a loan by a bank, it is constantly being repaid to the banks with interest. But here’s the big fault…. when the banks loaned out all that ‘e’ money they of course couldn’t at the same time ‘create’ and circulate into the economy the money needed to be available for the repayment of all that interest.
Therefore at any one given moment the whole monetary system is technically bankrupt. Just as in many a personal individual’s case, if a spot audit is conducted, their liabilities very often exceed their assets, yet bankruptcy is often preemptively sidestepped when extra funds are accessed, often these days via a credit card or two.
In the case of our always looming national bankruptcy, such preemptive action takes the form of a permanent Reserve Bank stipulation that there must be ‘growth’ with an inflation rate built in at around 2.5%. Such factors ensure that the economy is continuously expanding, and with expansion theoretically comes ever greater economic activity with more business production and more jobs.
This of course ensures that the banks will always have plenty of new customers to lend to, which supports the ponzi-go-round by constantly adding more ‘e’ money loans into the system to feed the never ending demand for the extra funds necessary to pay the banks’ their ill gotten interest on past loans.
So we have a classic ponzi scheme which classicly represents a downward spiral into never-ending debt.
For a great little 3 video series about this subject here are the links. Note that the commentary seems specific to the US, but you can be assured that everything applies to the Australian situation as well:

https://www.youtube.com/watch?v=AgKFLk9xffA
https://www.youtube.com/watch?v=4wQWVxk49ts
https://www.youtube.com/watch?v=BFMqsBAP4Q4
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Re: New tax

Post by eddy »

Pretty interesting video it backs up what my public primary school teacher said about aiming to keep inflation at around 2.5% which is not too bad if there is an increase in the population.

I think that film may of been made a while ago because deflation is the problem now where in Japan it costs you money for the bank to look after it and I wonder if it is because they have an aging population that does not welcome newcomers into the country to increase demand.

If we could get willing and able workers we could double the population and double the amount of money in circulation with no inflation in my opinion.

I have no problem with fair dinkum banks or committing to repay a mortgage regardless of property price movements as it makes people think twice before they get carried away like America.

My problem is when people buy and sell in seconds with no knowledge of the business or other types of “innovative” financial deals.

Regarding superannuation this was interesting when he said he would need $1m just to get the same of the pension so why bother http://kmo.ministers.treasury.gov.au/tr ... /027-2016/


Just thinking about all those who have accumulated compulsory super and maybe when they turn 70 they can take the lot??
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Re: New tax

Post by eddy »

@ Looselion

Although the guy talking on the video does not sound too happy, I disagree as interest is paid back to shareholders and the only reason America had their foreclosure problem was because if house prices went down people could just hand the keys back to the bank.

Anyway, many people say if the super was not increased wages would not increase but I am sure prices would.

In my opinion compulsory super is stupid as no one knows how long they will live and it should be replaced with a 10% tax and modest pension.
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Re: New tax

Post by eddy »

boronia wrote: Sun Apr 03, 2016 11:00 am Would you really trust the Government to look after your super wisely?
I would trust an Australian government more than the shonky super funds who wasted so much in the American sub prime joke.

Just think of the infrastructure and job creation.

Paul Keating is smarter than me but he lost me on TV when he said we had two Australian advantages iron ore and superannuation which we can invest.

Admittedly wages would stay but prices would rise https://www.youtube.com/watch?v=98Ex1a8wtkU
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Re: New tax

Post by eddy »

What happens if you have sufficient super to live to ninety and you die at 65.
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Re: New tax

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You leave it in your will or superannuation benefit statement or whatever it is called, nominating a beneficiary
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Re: New tax

Post by eddy »

Fleet Lists wrote: Thu Nov 26, 2020 4:02 pm You leave it in your will or superannuation benefit statement or whatever it is called, nominating a beneficiary

I would rather give things to them while I am alive.
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Re: New tax

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So that you dont have any super if you live to 85, You cant have it both ways.

Not that I am a great fan of Keating's superannuation scheme which was not one of his successes.
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Re: New tax

Post by eddy »

Fleet Lists wrote: Thu Nov 26, 2020 5:26 pm So that you dont have any super if you live to 85, You cant have it both ways.

Not that I am a great fan of Keating's superannuation scheme which was not one of his successes.
I saw Paul on TV say wages would not rise if compulsury super was increased and I agree with him but prices would.

The new tax I suggested would replace compulsury super and would allow the Fed to go 50/50 with free enterprise to build infrastructure creating real jobs and taking people off the dole.
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Re: New tax

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Unfortunately I dont share your confidence.
After 10% GST and then a further 10% as you suggest - we soon will all be working for tax.
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Re: New tax

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Fleet Lists wrote: Thu Nov 26, 2020 6:24 pm Unfortunately I dont share your confidence.
After 10% GST and then a further 10% as you suggest - we soon will all be working for tax.
Perhaps I am wrong but it seems to me exactly the same as increasing compulsury super to 10% except the money would be spent on Australian infrastructure rather than the super shonks investing in dubious overseas housing bubbles.

Also you can get the pleasure of helping the kids now when they need it without worrying if you have sufficient to take you to 100 years old.
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Re: New tax

Post by eddy »

As women are complaining about not having the same super as men I think it would be much fairer if everybody paid an extra 10% tax which replaced compulsury super with a modest pension for everybody.
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Re: New tax

Post by Centralian »

I'm sure it will all be history the way we're heading. With the new world order we'll have a universal basic income. :-(
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Re: New tax

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eddy wrote: Tue Aug 31, 2021 10:30 am As women are complaining about not having the same super as men I think it would be much fairer if everybody paid an extra 10% tax which replaced compulsury super with a modest pension for everybody.
Thinking about it more I think most women would vote for it if someone said that was their intention.

It would save super funds with more money than sense pushing up the prices of shares and housing.
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Re: New tax

Post by eddy »

Evidently Australians pay $30b per year in super fees, as much as our electricity bills but we are unaware of it.
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Re: New tax

Post by eddy »

I saw Stephen Jones on TV say compulsory super is not working as intended as it saves the wealthy billions while the most of the rest end up on the pension

How easy would it be just to replace compulsury super with a 10% tax?
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Re: New tax

Post by Heihachi_73 »

eddy wrote: Wed Nov 09, 2022 5:23 pm I saw Stephen Jones on TV say compulsory super is not working as intended as it saves the wealthy billions while the most of the rest end up on the pension
Italicised for emphasis. Sounds like it's working exactly as intended, in line with a certain federal political party which has been in power for the most part of the last seventy years.
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Re: New tax

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But that was actually started by Keating (Labor Party) when he was treasurer. It always surprised me that Labor would introduce something like that.
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