8 Oct 2019

Who should pay for the rising cost of Superannuation?

From Checkpoint, 5:40 pm on 8 October 2019

Should superannuants who are still earning big bucks in retirement pay a special higher tax rate, to cut the cost of pensions?

That's one idea up for discussion in a three-yearly review of retirement policy being carried out by the Commission for Financial Capability.

Super currently costs $39 million a day and that could rise to $120 million in the next two decades.

The proposal could see some over-65s paying a top tax rate of 39 percent - higher than the current top personal tax rate of 33 cents in the dollar - in a bid to bring the bill down.

Lisa Owen asks Interim Retirement Commissioner, Peter Cordtz, how exactly it would work.