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Australia's business lobbies are fond of complaining that company tax is too high. Lower it, they argue, and the economy would become more dynamic and everyone would benefit. The reality isn't that simple. The combination of Australia's dividend imputation system and the compulsory super scheme greatly benefit Australia's big companies.
Last week the political leaders were brawling over assistance payments for middle-class Australians, with Tony Abbott claiming to be promoting 'tax justice for families'. A new Human Rights Commission report has shown how our super and tax systems fail unpaid carers, who are needed to sustain many families. But not the ones whose votes matter most.
Superannuation is not generally available before the age of 55. For most of the population of Australia this is scarcely a problem, as they are likely to live well into their 80s. But the average life span of Aboriginal Australians is much lower. Many will not live long enough to derive financial advantage from their super.
The demise of Gunns, Tasmania's biggest paper and pulp mill, has been greeted as a triumph of environmentalists over business. The saga encompasses much more than that. It poses some deep questions about ownership and accountability in Australia's financial system which are yet to be answered persuasively.
Fr Frank Brennan SJ is board director of St Vincent's Health Australia and professor of law and director of strategic research projects (social justice and ethics) at Australian Catholic University. Text is from his address at Leading the Way, the Catholic Health Australia Conference, Perth 21 August 2012, Governance and Mission stream.
Paul Keating says he changed superannuation from an elite system to one which would include 'the bloke running behind the garbage truck'. But a new elite has left the garbo in the dust. Labor's core constituency and the economy would be much better off with the age pension rather than super.
A third of taxpayer-funded superannuation concessions — around $10 billion a year — are directed to the top 5 per cent of income earners. People living on or below the poverty line get no such support. This week's Tax Forum must ask: Are we proud of how we redistribute our national wealth?
Factors such as education, housing and connectedness have a big impact on health. There is no point telling an unemployed homeless person: 'Don't smoke, it's bad for you.' It's time the Government made a concerted effort to address the health needs of marginalised groups.
'We need to break down the silo mentality between health, welfare and education. This exists in church agencies as much as elsewhere in society. We must be committed to providing first rate health care to our patients, but also to creating a more equal society.' Text from Frank Brennan's MercyCare Oration.
One of our most daunting challenges is how to look after the baby boomers, who are fast approaching old age. The cost of aged care, and the number needing it, is skyrocketing. Funding has not been committed, and there's a train wreck in sight. Doing nothing is not an option.
Channelling people into a default superannuation fund could be compared with the indignity of income management. But MySuper is geared to protect the human dignity of Australians in retirement against their own indifference, and also commercial exploitation.
The Government's theoretical model does not stand up to scrutiny in the real world. Collecting higher taxes from the mining industry to disburse for other worthwhile purposes may be perceived as contributing to the 'common good'. In fact, the reverse could be true.
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