Even though people lost fortunes on their superannuation
during the global financial crisis the Government was still
behind the scenes raking in billions of dollars in taxes from
earnings on many investments:
http://www.specsuper.com.au/media/15418/fact_sheet_tax.pdf Quote:If you are a superannuation fund member, earnings on investments are taxed at 15% within the Fund. Tax deductions, offsets and credits often reduce this 15% rate. This tax is deducted from the investment earnings before crediting rates are determined. In other words, by the time the Fund declares its final crediting rate, the tax on investment earnings has already been taken out.
This means that although the tax they took doesn't appear on your statement
(except the 15% on the way in tax)
& even though you lost a fortune on your total investment during the GFC
the Govt. still took money from any bank deposits or bonds etc which
made up part of your portfolio.
They didn't allow for the loss on shares & other investments &
offset that against the win made on bank deposits etc.
The reason is that they tax each part of the fund as a whole without regards
of an individual's situation.
For instance if that person sold the shares they had at a loss during the GFC
this was not offset against any gain on other investments.
If you were running a company you only pay tax on the the total profit.
If you were like a company you would have paid no tax!
I am fed up with the Govt. using the superannuation system as their cash cow
& also the parasite people running it using it as their gravy train.
The whole superannuation rort stinks.
I bet not many people knew what I just told them about above?