The Revenue of Retirement

Scott Morrison has told Australian workers that they should not expect an aged pension when they retire. He points out that the pension should stay around as a "safety net" but should cease to exist as "an entitlement for all."

Whilst this is a step in the right direction, he is not aiming for the right policy goal. Instead of trying to minimize spending, he is aiming to maximize revenue. The very opposite of what he pledged to do at the start of his role as treasurer.

Morrison should not only reduce aged pensions, he should also reduce income taxes. Instead, he is clamping down on tax concessions to superannuation - looking at how to limit the ways people can put their income into super at the rate of 15%.

Super has become "an open ended vehicle for wealth creation" according to Morrison - something completely different from its intended purpose. This is no surprise however, when the alternative for Australia's highest earners is to have 45% of their incomes taken away by the state.

Instead of trying to profit from retirement policy, Morrison should be aiming to give retirees as much independence as possible. This concept is almost revolutionary in an age where the average person's life is so inextricably bound by the state. Imagine that a person can earn their own income, keep it and spend it how they see fit.

 

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