Lowest income earners hit by ‘unfair’ superannuation system
A submission has been made to the government to allow low-income earners to opt out of compulsory superannuation contributions.
A report into the super system found that the lowest 10% of earners are the worst-off under the current model – even footing the bill for tax breaks for those earning more.
David Murray, who is responsible for the report, told Neil Mitchell the system is unfair.
‘The higher your income is, the greater the tax concession you receive,’ Mr Murray said.
‘The lowest decile of income earners in Australia actually pay to help others get those concessions.’
Mr Murray said the system needs to change sooner rather than later.
‘The longer it goes on the way it is, the larger the vested interested interests and the more difficult it is politically to face up to a change.’
Neil said it sounds like the system is ‘as good as broken’.
‘If you work hard all your life, it would be quite reasonable to expect a comfortable retirement,’ he said.
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