AUSTRALIA - The Australian worker on an average income could be nearly AUD$40,000 ($21,014) better off in retirement savings if the government's superannuation contribution tax was abolished, the Institute of Chartered Accountants (ICAA) in Australia said. "If the government or opposition are serious in their pre-election promises about reducing taxation, and planning for Australia's ageing population, abolishing superannuation contribution tax would be the most effective way to assist the majority of Australians, both now and in the future," said Stephen Harrison, CEO of the ICAA. Superannuation contributions tax, currently 15%, is calculated as a percentage of the superannuation contribution. According to the ICAA, abolishing this tax would mean that the Australian worker, on the average income of $42,100 a year would receive $264,324 in 20 years time (assuming an average annual after tax growth rate of 5%), as opposed to $224,675.
Harrison added: “The government is sending conflicting messages - on the one hand, they tell us that Australians should be putting the maximum amount into superannuation, because of the rapidly inc...
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