Earn more than $88,000 a year? You’re classified as ‘rich’

A plan which would give a $7 billion boost to Australia’s bottom line has been thrown up by the Grattan Institute following a policy think tank.

But there’s a catch, of course.

It would mean higher superannuation taxes.

UNDER THE PLAN

• Lower the $30,000 pre-tax contribution to $11,000.
• Change the post-tax super contribution limit to $250,000 over a lifetime.
• Put a tax on superannuation earnings.

John Daley, chief executive of the Grattan Institute, told Neil Mitchell the proposal would target ‘the rich’ in society.

‘It’s essentially top 20 per cent,’ he explained on 3AW Mornings.

‘So that’s typically people who are earning more than about $85,000 – per person – while they’re working and then typically retiring onto incomes over $50,000.’

It was there the conversation took a twist.

Neil Mitchell questioned whether those earning more than $85,000 were ‘rich’.

‘Really?’ he said.

‘It might not sound like rich, but those are the numbers,’ Mr Daley explained.

Click PLAY below to hear John Daley’s chat with Neil Mitchell.