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Design of a sustainable superannuation system
Published on 01 Jul 22 by "TAXATION IN AUSTRALIA" JOURNAL ARTICLE
This chapter of the Case for Change paper considers the fundamental design of the superannuation system, and the best reform options to our tax system to: (1) support a sustainable superannuation and retirement system; (2) reduce unnecessary complexity and ensure greater consistency in the various superannuation caps and thresholds; and (3) encourage improved compliance by employers with the mandatory superannuation guarantee regime. There are a number of aspects of Australia’s superannuation system which are inefficient and complex. Many of these issues are interrelated. Even parliamentary committees have observed that the tax treatment is complex: contributions, earnings and benefits are partially taxed and partially deductible, the result of a pragmatic attempt to reduce tax expenditures, especially those benefiting higher-income individuals, while encouraging compliance.