The Australian Financial Review --- Page: 62 : 16 February 2008 Original article by Brian Toohey
LexisNexis Summary
The Australian superannuation industry has suggested to the Federal Government a way to fight inflation. Tax cuts promised during the late-2007 election campaign, which the Government has vowed to honour, could be diverted into super savings, reducing the inflationary impact and at the same time pleasing voters. However, such an approach would be misguided, for example as it would also create an added cost of $A7bn via super co-contribution payments. Far more sensible would be a strategy to better target the income tax cuts at low-income earners, to reduce the "middle class welfare" tax concessions now in place, and to no longer exempt residential real estate owned by well-off older Australians from taxation of their retirement assets.
