The primary goal for the tax review is to provide a fair tax and transfer system for everyone. That has taken a full study and looking very closely at how the economic part of the government has been run in the past. Through a long a grueling study of all of the needs of the populations in Australia and trying to determine the best way to show fairness to all of those populations through all of the tax and transfer processes, these proposals were developed.
There is good and there is bad in the proposals and of course hte mining industry is fighting the whole thing. With that in mind, this paper will look at three of the proposals and compare them to the design principles that are to include fairness. The principles that will be used here are simplicity, equity of fairness, and efficiency.
The simplicity of this program is excellent. It is clear and easy to understand both for those that are young and just beginning to plan their retirement and those that have been saving for awhile. The catch up issue for older Australians may be a little more difficult than the rest as even though it does give a good opportunity for catch up, understanding how they might do that is difficult. They may need some advice on the best way to manage that in such a way that it is to their advantage then and now.
At the same time, it seems very equitable. It would have been very easy to change the rule now and not go back and help those approaching retirement. That would have caused a very unequitable situation for the elderly Australian's now. For example the new guarantee has been extended to workers aged 70 to 75 so they can be on an equal footing with the younger workers (futuretax.gov). ...