Financial Journalist Michael Pascoe Debunks Misinformation on Superannuation Taxation

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Financial journalist Michael Pascoe has criticised recent claims about the taxation of superannuation in Australia, stating that more misinformation is being spread than actual truth. Pascoe argues that while some high earners may be taxed at the 30% rate on their superannuation earnings, most Australians will not be affected in this way.

Debunks Coalition’s 30% Tax on Super Earnings

Australian journalist Michael Pascoe has debunked claims of a 30% tax on super earnings in an opinion piece. According to Pascoe, even the wealthy will not be taxed the complete 30%, and the tax rate is lower than outside of superannuation. 

The Coalition’s response to the tax has been branded “dishonest, rather desperate and generally despicable” by the journalist, who states that the media are magnifying the proposed policy improvement through a mixture of bias, ignorance, and click-baiting journalism. 

Suppose Anthony Albanese is prepared to use a phrase from Joey Maloney, senior associate for the Grattan Institute’s economic policy program. In that case, his appeal could be the best of his time as prime minister:

“If 30 per cent is good enough for someone making $50,000 a year working in a retail shop, then it’s good enough for a retiree with three million bucks in super.”

Capital Gains Tax Will Stifle Economic Growth

Pascoe suggests that earnest money is made through capital gains on investments, and the Catch-22 is that you have to have serious money to make serious money. The journalist points out that the Howard/Costello government, supported by Labour, halved the tax on capital gains. 

However, instead of sparking a golden age of productivity-enhancing investment in Australian business, it sparked a frenzy of real estate speculation. 

Pascoe concludes by stating that the proposed Labour tax of 30% will mean a capital gains tax within the super of 20%.

Australians should not be too worried about the tax implications of their superannuation, as the reality is not as dire as some may believe. However, he cautions against over-investing in property as a means of securing financial stability.

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