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Tuesday, 6 September 1983
Page: 365

We the undersigned citizens of Australia and employees of the gas industry respectfully showeth.

That the Government's decision to apply tax at the rate of at least 30 per cent to lump sum superannuation benefits accrued after 1 July 1983 from primarily the employers' contributions:

(a) is unfair to those employees who have foregone salary during work-lives to contribute to superannuation schemes within an accepted and appreciated system whereby such employees judiciously and conservatively prepared for a more secure and stable retirement than would necessarily be provided by social security benefits alone;

(b) is not in the interests of providing jobs and careers for the youth of Australia in that it may create a tendency for employees to continue to work longer than would be the case at present so to allow either the accumulation of comparable net lump sum benefits or to allow the purchase of a higher annuities if the latter be prescribed as stated;

(c) is likely to act as a disincentive to employees to contribute to a superanuation scheme and thereby add to the number of recipients of social security benefits;

(d) is not the way a Government should increase its revenue/reduce its deficit under the guise of correcting an inequity (i.e. between pensions from a superannuation scheme being fully taxable whereas 5 per cent of a lump sum is fully taxable) or eradicating an alleged tax avoidance (i.e. 'double-dipping') scheme which it is not as it is and has been perfectly legal; removal of taxation applying to pensions payable from superannuation schemes would have been equitable to take a pension or part-pension in preference to a full lump sum and thus contributed towards the Government's objectives;

(e) should not be utilised in the ensuing debate to generate reviews of a nature leading to the imposition of new taxes on capital gains or property assets arising primarily out of the employment of those who have had moderate means and income as employees.

Your petitioners therefore humbly pray that the House will request the Government to repeal its decision to impose such tax on lump sum superannuation benefits and to desist from further changes adverse to the means and well-being of those to retire or in retirement.

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