There’s something odd about those television and internet advertisements telling us we are getting more super.
The review presents the finding starkly. Lifting compulsory super contributions from 9.5% of salary to 12% will cut working-life incomes by about 2%.
Many economists think that earnings in super funds should be taxed at a relatively low rate, compared to labour earnings and other types of earnings such as interest and dividends.
If a recipient has over $11,500 in liquid assets their payments can be temporarily paused.
The tax office is trying to get a sense of how many Australians cashed out their super despite not fitting the early access scheme’s requirements.
Australians will as a result have until 30 December to withdraw up to $10,000 for the first or second time.
Some Australians have used the government’s early access to super scheme in desperate bid to buy a home.
Hundreds of thousands of Australians have withdrawn up to $10,000 of their super early despite not having suffered financial hardship.
The data also points to an increase in discretionary spending following payments.
Many of Australia’s largest superannaution funds have been slammed for not living up to their public commitments.