MASSIVE , EXPENSIVE AND RETROSPECTIVE TO 2007
Further to my comment on the 9th September 2011, I have now received the latest installment on this proposal to impose a death tax by stealth via our superannuation funds. It’s even worse than we first thought.The Australian Tax Office, Treasury and Government propose to back date this theft to the 1st July 2007. That’s right folks 1st July 2007! … Retrospectively! see: http://austeaparty.com.au/web/?p=5035#more-5035
So not only do they want to attack our superannuation when we die, they want to go after those that have already died and torment the trustees and executors who by now perhaps have paid benefits already and penalize these folk to cough up tax based on retrospectivity.
Now for those of us old enough to remember the last time a government tried to do this was when the then Labor Government under Hawke and Keating proposed an attack on leave accrued prior to August 1977 with a view to taxing this at marginal rates of tax rather than at concessional rates.
This folks is outright theft and bloody mindedness of this incompetent thought bubble government.
Reaction to this proposal from The Association of Superannuation Funds (ASFA) of Australia (which is the peak industry body for the superannuation sector, representing all types of superannuation funds, service providers and fund members) has been swift and scathing ……..as:
“The ATO interpretation as outlined in the Draft Ruling differs significantly from that adopted by virtually all trustees of superannuation funds and other pension providers in their administration of pension products,”
And adding further:
“The ASFA submission also warns the ATO be careful in determining the date from which its final ruling should apply, stating that the trustees of superannuation funds would experience considerable practical difficulties in complying with the ruling, particularly if it was retrospective to 1 July 2007.”
This is a multi BILLION dollar (eventually Trillion$) theft of both the living and the dead.
So how do they expect to get away with it???
Is it simply a coincidence that the government has been flexing it’s muscles to silence dissent,
and also just happens to launch an enquiry into the media at this time?
It seems obvious to me that it is simply because they do not want policies or thought bubbles like this
to be outed in media.
They would rather that both you and I remain dumb and uniformed so that their level of deceit can continue.
Even without the huge ripoff to the retiree…The sheer cost of this to the superannuation industry is massive and also will have the consequence of increasing the fees you and I pay for this to be administered. This will destabilise whole sectors of the economy going forward.We will all get hit one way or another.
The cost of advice will also increase as a result as both you and I will seek advice on saving possibly 10’s of thousands of dollars in death taxes. Hence the reason for government to also attack advice businesses such as your local accountant, tax lawyer or financial planner.
The audacity though of this government to even stoop this low is breathtaking, and their duplicity and arrogance mixed in a brew of incompetence knows no bounds.
If Australia were a corporation folks, you would demand the heads of Australia Limited on a plate.
One final note.
Our Treasurer receives an accolade as the worlds best finance minister.
Really ?
When he inherited a debt free economy, with a massive surplus and future fund, then runs the economy into a story of debt and deficit for 4 consecutive budgets and now is seeking to raid the future fund for Labors failed experiments, how does he receive such an accolade you may well ask ?
Well, lets not forget that this is from the Europeans, whose own economies are in massive trouble with Greece on the verge of bankruptcy, both German and French economies struggling, the entire Euro zone in fact is in so much trouble that even the concept of the European Union may well be threatened.
I guess if you had foolish people in a room, they have a tendency to recognize their own kind.
The last time an Australian Treasurer got this accolade it was Keating himself.
We all remember this desiccated coconut.
He is the one that gave us the recession we had to have !
Undaunted, these guys are working towards a DEPRESSION!
regards.
The numbers guy
This is so stupid. What if when you die, you have no money anway, so how do they get the death taxes then? Gilliard and Co have to go now.
ATO tax ruling TR 2011/D3 undermines SMSF estate planning
If you had any doubt about our federal government, treasury and the ATO running a scheme with an agenda to ensure that your loved ones remain wage slaves in perpetuity then ATO tax ruling TR 2011/D3 will dispel that doubt forever. The uniquely Australian SMSF investment vehicle had the potential to evolve into a truly universal pension scheme that over two or three generations could have unshackled the majority of the population from the need of a government funded handouts in retirement via intergenerational SMSFs.
In my submission to the Cooper review last year I questioned why SMSFs are treated differently from large retail and industry funds who are allowed to pool reserves from its members investment earnings so that the need to sell down assets is avoided. Instead SMSFs are compelled to entirely pay out the residual as death benefit rather than allowing it to be retained in the fund.
The dark forces of excessive fiscal rectitude are cheering the actions of the myopic short term tax revenue raising that our federal government through treasury and the ATO have unleashed on those fiscally literate enough to provide for themselves and their loved ones.
Make no mistake our government is a honey badger (genus weasel family) that has set a sweet sticky trap deceptively called a tax free retirement income that is anything but tax free. Australians now pay tax when they contribute to super (euphemistically called concessional contributions) they pay tax on the accumulating earnings inside super for their entire working life and the real kicker when the main breadwinner dies the adult beneficiaries and spouse are slugged with an accumulation tax of 15% inside the fund plus a 16.5% in the recipients hands and the coup de grace capital gains tax where the asset has to be sold to pay for the usurious tax grab.
When the then treasurer Paul Keating introduced taxation of earnings, contributions and CGT in superannuation back in 1988 by inserting part IX into the 1936 tax act he was compelled by the opposition to soften the slug by introducing a special tax deduction section 279D also known as the anti-detriment payment that was suppose to prevent the taxing of the dead.
In true honey badger form (a carnivorous species with thick skins and ferocious defensive abilities) the old section 279D of ITAA was rewritten in 2007 into section 295-485 of the ITAA, 1997.
The restrictions imposed on SMSFs by the ATO’s interpretation by way of limiting what can be applied against the anti-detriment payment through reserves (concessional caps) as well as limits on insurance proceeds and disallowing using other members funds to fund the extra benefit payable has stripped spouses and their adult beneficiaries of SMSFs their full entitlements.
Basically what this tax ruling means is when you reach 60 forget about the “tax free” nonsense take your money out while you can because your government are cheating lying bastards.