Thread: Pension Age may move to 70

Originally Posted by ramblingboy42

whats the problem with that?

it's my money which I sacrificed things in my life for so that I can live with dignity.

I have already paid taxes on it several times over.

What right now does any person....any person in any authority....have..to dip further into the savings that I worked so hard for , for 45years?

I think I misread, sorry, I read it as you and planner were working out how to make the most of the pension, get the most put of it, like many others

While people pay only 15% contribution tax on deposits salary sacrificed pre-(income)tax. You also pay the contribution tax on any interest added to the account every year.

If the "value" of the superannuation balance in your account falls, like it did during the GFC, you don't get any tax rebate for the losses. But you will pay contribution tax on the gains in the balance after a drop, even if it only restores the value of the account before the drop. It was even the case that the ATO was taxing your contributions at the same time as the balance was going backwards.

(e.g. on a 1 July start of year bal of $100,000. which fell to $80,000 because of the GFC and you contributed $10,000, which would have meant a balance of $90,000 less charges at end of year = a loss of $10,000 the ATO still required the $1,500 contribution tax on the deposit, meaning a loss of $11,500 in spite of depositing $10,000. If you were a business investor and that happened, you would have paid no tax and received tax concessions for the $20,000 loss in a subsequent year.)

The argument is therefore that you have paid tax on the same money twice while it is deposited and remains in the account, they shouldn't be taxing it a third time when you withdraw it in retirement.

However if you retire after your preservation age and before age 60 you will pay tax three times on your super.