Flat tax super system simple but not fairer

The federal government's new superannuation tax system sacrifices fairness for simplicity, secretary to the treasury, Ken Henry, conceded. “One thing anybody who has spent any time with the tax system knows is that there is an unavoidable trade-off between simplicity and equity,” Henry said. According to Henry the changes proposed by the government would effectively produce a “flat tax superannuation system”, where high-income earners were taxed at the same rate as low-income earners.

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