MYEFO; stealing super and calling it revenue

ThinkQuipper writes: 

This year’s MYEFO includes some particularly dodgy changes to the treatment of superannuation and unclaimed monies.

Connecting people to their super is of course a good thing and the ATO already does some good work in this area (SuperSeeker), this ‘reform’ doesn’t help that. It takes people’s super accounts, transfers them to the ATO and calls it revenue.

These arrangements already apply to superannuation accounts worth less than $200 and untouched for over five years, these changes dramatically lower the bar to $2,000 untouched for more than 12 months.

This brings in $555m of revenue in 2012-13 mopping up accounts which already fall in this category and a further $120.5m over 2013-16 as more accounts tip over the threshold.

Similar changes apply to unclaimed bank accounts and life insurance yielding $93.4m of ‘revenue’ and unclaimed company monies for another $94m.

All told in 2012-13 these measures take $742.4m from people’s savings and call it government revenue (adding insult to industry ATO and ASIC will receive an extra $71m between them to implement it). Taking this into account the, already wafer thin, surplus shrinks from $1.1b to $357.6m

Originally posted at Ragertarian, and reproduced with permission. 

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