The Australian Financial Reviews is on a mission to tell the truth about how much money Australians have saved over the last four decades and what their tax-dodging habits look like.
We do that by breaking down the data.
Read more We’ve taken the time to analyse and interpret the data and what we have uncovered is an interesting snapshot of how Australia has spent its tax dollars over the years.
We’re also taking the time and effort to dig through the tax laws to get a clearer picture of what exactly we’re talking about.
This story starts in the late 1980s and into the 1990s.
As the population of Australia aged, so did the need for the country to increase its tax revenue.
The boom of the mining boom was a huge boon to the tax-payer and tax avoidance became more popular, particularly as there was a lot of money to be made in the Australian mining sector.
In 1993, there was an election, and the then Treasurer, Robert Menzies, was seen as a moderate Labor candidate.
Menzie had to make a decision about his future.
What do you do with the resources you have and how much should you be taxed?
Menzies chose to raise taxes, but at the same time cut the amount of money coming into the economy.
He made a number of policy changes, including reducing income tax rates for the superannuation industry and a cap on the amount Australians could save on retirement income.
Menzie also made changes to the GST, which had been designed to encourage more spending and increased the amount that Australians could pay into their superannuations.
In the end, Menzis tax policies led to a tax-fraud scandal.
The scandal cost the Coalition its majority, but the reforms that Menzys introduced ensured that the economy did well for decades to come.
The Labor Government responded by introducing a raft of policies that increased the size of the super fund, introduced a 10 per cent capital gains tax on investments in mining companies and increased taxes on investments from mining to restaurants and hospitality.
When the Labor Party took power in 1992, it cut taxes for superannuitants and made the super contribution tax free.
However, as the economy boomed, so too did the tax burden for super accounts.
After the election, Labor introduced a superannuity levy, which was intended to bring down the tax bill for Australians and make it more affordable.
The levy was introduced in 1997 and increased to $2,500 in 2014.
It was abolished in 2019.
The Liberal Party has also been a major beneficiary of the tax break, having introduced it in 2004.
But the Liberal Party also took an unusual tack.
Instead of just reducing the tax rate, it also made it more expensive to be a super user.
So, for instance, if a person bought a $2.5 million home, and then paid an extra $200 a month in superannuants, they would end up paying a $1,000 a year tax bill.
That was not the case if they paid an additional $200 to a super fund and paid the levy.
There are two ways to look at this.
One way to look is that the higher the amount a person pays, the higher they pay tax.
But that is only true if the tax is paid on a capital gain or interest income.
The other way to see it is that if a superuser is a single person, their income falls and their tax bill increases.
In the case of a family of four, that family would pay $30,000 more in tax each year.
The extra $30k they paid in super was paid in a tax free manner.
This means that a single individual would pay less tax on their super if they have a family member with the same income.
But a family with two people earning $50,000 and two earning $20,000 would pay about $80,000 in tax on the $50k.
As you might expect, the Labor Government did away with the super account levy, although it has increased it for people who have made a large amount of super.
If you’re looking at the whole package, this is an incredibly generous tax break.
If you’ve got super, you’re paying a higher tax bill, which means that your tax bill will be lower.
And if you’re a super users, you’ll pay less taxes.
So, the Liberal Government has taken the money that the super tax has given the super user, and made it even more generous.
They have also cut the rate of the GST to a level that it is not as competitive with the competition from New Zealand and the US.
This has resulted in a significant reduction in the tax that super users pay.
What do super users do with all this cash?
The big question that most Australians have about super is whether they can