Note: Where available, the PDF/Word icon below is provided to view the complete and fully formatted document
ATO confirms super tax failure.



Download WordDownload Word

image

MEDIA RELEASE

 

Kelvin Thomson MP

Shadow Assistant Treasurer

Member for Wills

 

5 November 1998

 

ATO CONFIRMS SUPER TAX FAILURE

 

“Official revenue figures from the Australian Taxation Office provide conclusive proof that the Government’s 15% superannuation surcharge tax is a dud.”

 

In Adelaide for the Association of Superannuation Funds (ASFA) Conference, Opposition superannuation spokesman and Shadow Assistant Treasurer, Kelvin Thomson said, “the Government’s super tax is a super failure.”

 

“The Commissioner of Taxation’s 1997-98 annual report states that the ATO only collected $347 million revenue from the surcharge tax which is some $133 million short of the estimated $480 million the Government said it would collect. That’s a 28 per cent super tax failure rate.

 

“This comes on top of the recent report by the Association of Superannuation Funds of Australia and the Investment and Financial Services Association which estimates collection costs of the super tax at $190 million, and counting. That’s about $20 per fund member regardless of whether they pay the tax.

 

“Ordinary workers are forfeiting over $190 million in retirement income so that the Government can collect $347 million super tax revenue! What a debacle of a tax.

 

“Welcome to tax reform, Howard-Government style.”

 

Superannuation surcharge tax

1997-98 estimate

1997-98 actual

Variation

Revenue: 

Collection costs: 

Number of taxpayers paying surcharge:

$480m [1] 

$96m [3] 

355,000 [5]

$34 7m [2] 

$190m [4] 

253,000 [6]

$-133m -28% 

$+76m -60% 

102,000-29%

 

Further information: Tim Fawcett 0419 517 326 or (02) 6277 4045

 

[1] Second reading speech, Hon C. Miles, House Hansard, 2/10/97, p.9123.

[2] Commissioner of Taxation, Annual Report 1997-98, p.40.

[3] Pessimistic estimate of surcharge cost to the superannuation industry at time of introduction; Joint ASFA and IFSA report, The surcharge. survey of costs and implementation issues, October 1998, p.ii

[4] Estimated implementation costs of total surcharge to October 1998; Joint ASFA and LESA report, The surcharge: survey of costs and implementation issues , October 1998, p.ii

[5] Second reading speech, Hon C. Miles, House Hansard, 13/2/98, p.886.

[6] Commissioner of Taxation, Annual Report 1997-98, p.40.