Superannuation was implmemented 20n years ago so that the goevernment would not have to pay for pensions with the aging population. We no longer have an aging population, pension rates remain at around 10% of the population and Superannuation has become a massive tax rort for the rich and super rich. These tax deducations alone cost the Australian ecomony over $50 Billion, of which over $25 Billion goes to the top 5% of rich Australians, who were and are capable of saving for their own retirement.
Pension
The Pension is set at 40% of Average Weekly Earnings.
Pension 2
Pension 2 is a voluntary pensions scheme where tax payers can contribute up to $750,000 tax free in their life time. Pension 2 will be managed by the Future Fund. Pension 2 will allow tax payers to retire on up to 80% of average weekly earnings.
Superannuation Transition
Existing Superannuation Funds will be required to transfer balances up to $750,000 for each citizen into the Future Fund. Industry and Retail Super Funds will then be converted to Listed Trusts, where units can be bought and sold. Self Managed Super Funds will lose their Tax Status and be treated like other trusts.
The removal of Compulsory Superannuation will see an immediate 12% increase in worker salaries, a subsequent increase in income tax, and a saving to the budget of over $50 Billion were year.