Reforming Australia's Superannuation Tax System and the Age Pension to Improve Work and Savings Incentives

Asia & the Pacific Policy Studies, Vol. 4, No. 3, pp. 417–436

Crawford School Research Paper

20 Pages Posted: 26 Oct 2017

See all articles by David Ingles

David Ingles

Australian National University (ANU) - Crawford School of Public Policy - Tax and Transfer Policy Institute

Miranda Stewart

University of Melbourne - Law School; Australian National University (ANU) - Crawford School of Public Policy

Date Written: September 11, 2017

Abstract

Australia's retirement income system combines private and public provision for old age. Retirees rely on private (but highly regulated) superannuation saving that attracts large tax concessions; a public, means-tested age pension; home ownership; and other private savings. Despite recent changes intended to make the system fairer and more fiscally sustainable, Australia's retirement income system still lacks coherence, produces inequitable outcomes and creates high effective tax rates on work and saving. This article proposes a more coherent approach to address fairness, reduce the effective tax rates on work and saving and provide adequate earnings replacement rates with greater fiscal sustainability than is delivered in the recent reforms.

Keywords: Age Pension, Income Tax, Retirement Saving, Superannuation, Work Incentives

Suggested Citation

Ingles, David and Stewart, Miranda, Reforming Australia's Superannuation Tax System and the Age Pension to Improve Work and Savings Incentives (September 11, 2017). Asia & the Pacific Policy Studies, Vol. 4, No. 3, pp. 417–436 , Crawford School Research Paper, Available at SSRN: https://ssrn.com/abstract=3058526

David Ingles

Australian National University (ANU) - Crawford School of Public Policy - Tax and Transfer Policy Institute ( email )

ANU College of Asia and the Pacific
J.G. Crawford Building, #132, Lennox Crossing
Canberra, Australian Capital Territory 0200
Australia

Miranda Stewart (Contact Author)

University of Melbourne - Law School ( email )

Melbourne, Victoria 3010
Australia
+61 3 8344 6544 (Phone)

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia

HOME PAGE: http://https://crawford.anu.edu.au/people/academic/miranda-stewart

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