Tax-free super for seniors to cost $100 billion: study
Tue Feb 26 2008
The Australian Financial Review --- Page: 5 : 26 February 2008 Original article by Brian Toohey
LexisNexis Summary
Rice Warner Actuaries has completed modelling on behalf of "The Australian Financial Review". The modelling suggests that moves to make superannuation tax-free for Australians aged over 60 will cost the nation $A100 billion over the next 15 years. The research found that the current cost to revenue of the concessional treatment of contributions outside the standard nine per cent super guarantee is $A6.4 billion in 2007-08. ANZ Bank's chief economist, Saul Eslake, recently expressed astonishment that the former Australian Government publicly recognised that the ageing population constitutes Australia's biggest fiscal challenge, but ultimately made the challenge worse by making it optional for people aged over 60 to pay tax.
