Savings account taxes 'should be banned'

Tuesday 21 September 2010

Article by Mozo

Australian consumers should call for an end to taxes on superannuation and savings accounts as part of the federal government's proposed public tax summit, a commentator has said.

Karina Barrymore of News Limited noted that the federal government's announcement of a tax summit is an excuse for "a good old public rummage" around troublesome issues.

Setting out her list of proposed reforms, she suggested that people should be more encouraged to compare savings accounts and grow their deposits under the tax system.

"Ban all taxes on superannuation and savings accounts," she stated. "We should be encouraging people (me included) to save for the future and be self-sufficient in retirement."

Among her other suggestions, Ms Barrymore proposed simplifying marginal tax rates into just a couple of tax brackets whereby the highest rate would be equal to the company tax rate.

The comments come after SuperRatings managing director Jeff Bresnahan recently told the Herald Sun that superannuation funds will struggle to grow their returns in the coming months.

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