Super taxes anger Australians

Australians overwhelmingly support compulsory superannuation, but are furious at they way it is taxed and confused at how the system works, according to ASFA re-search.

Australians overwhelmingly support compulsory superannuation, but are furious at they way it is taxed and confused at how the system works, according to ASFA re-search.

A study commissioned by the Association of Superannuation Funds of Australia (ASFA) found compulsory superannuation was just about the most popular decision ever taken by the federal government, with 97 per cent saying it is a good or very good idea.

But when it came to the rules surrounding super, and its multiple taxation, the mood changes dramatically.

"Respondents were angry at the lack of support by government, the changing rules and increased complexity and the lack of long term vision to help individuals become more self-reliant in retirement," says ASFA chief executive Philippa Smith.

"Ninety six per cent of respondents felt that the rules should be simplified so the aver-age person could understand them.

"Ninety six per cent of respondents felt that taxes should be reduced or removed to encourage people to save enough for retirement through super."

Smith says Australia was the only country in the world to tax super at three levels - contributions, earnings and the final payout. She says survey respondents reactions ranged from utter disbelief to outrage when informed of this.

"Ninety four per cent were critical of the government taxing contributions and earn-ings, rather than just the final payout, while 80 per cent believed Canberra needed to adopt a bipartisan approach in order to improve Australia's savings for retirement policy."