Logo image
Back
The Concessional Taxation of Australian Superannuation
Conference presentation

The Concessional Taxation of Australian Superannuation

Gabrielle Parle
2010 University Research Conference Program Book, p.10
USC Research Conference, 2010 (Sunshine Coast, Australia, 08-Nov-2010–10-Nov-2010)
University of the Sunshine Coast
2010
url
http://www.usc.edu.au/View
Webpage

Abstract

Banking, Finance and Investment superannuation
The Australian Treasury estimates that more than $14 billion annually is spent on the concessional taxation of superannuation. However, none of these funds flow to low income earners. Conversely, low income earners are the income group most likely to require retirement pension support and who thus hold the greatest capacity to benefit the tax concession investment. This thesis explores the question of whether Australia's concessional taxation of superannuation is consistent with Adam Smith's theory of an effective method of taxation which impounds equity, efficiency and simplicity. The research was performed by analysing sample data from the capital markets in order to construct a portfolio modelled on APRA's (Australian Prudential Regulation Authority) default style. An estimation was then made of the likely future value of an individual superannuation account subject to the tax concession impact. The research has found that not only does the tax concession impact skew the future value of the individual superannuation account but that it also creates a fundamental distortion to the risk/return profile of the investment.

Details

Metrics

543 Record Views
Logo image