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The Next Domino: Australia Doubles Tax on Retirement Savings

by SIMON BLACK | APRIL 8, 2013

Though Australia’s national balance sheet is comparatively quite strong, the government has been running at a net deficit for years… and they’re under intense pressure to balance the budget.

The good news is that Australia now has a goodly number of investor-friendly immigration programs designed to bring productive foreigners into the country, similar to the trend we’re seeing across Europe.

On the flip side, though, the Australian government has just announced new rules which penalize citizens who have responsibly set aside savings for their own retirement.

Any income over A$100,000 drawn from a superannuation fund (the equivalent of an IRA in the United States) will now be taxed at 15%. Previously, all such income was tax-free.

http://www.sovereignman.com/finance/the-next-domino-australi...

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Tax rate in Canada whether you are retired or not; you pay.

Federal Tax Rates
_15% on the first $43,561 of taxable income, +
_22% on the next $43,562 of taxable income (on the portion of taxable income over $43,561 up to $87,123), +
_26% on the next $47,931 of taxable income (on the portion of taxable income over $87,123 up to $135,054), +
_29% of taxable income over $135,054.
Fed tax is 19.5% tax on earnings of $100000.

Provincial Tax
-5.05% on the first $39,723 of taxable income, +
-9.15% on the next $39,725, +
-11.16% on the next $429,552, +
-13.16 % on the amount over $509,000
Provincial tax is about 8% on earnings of $100000
Total Income Tax on $100000 is about $28000 or 28%

PLUS 13% sales tax for every dollar spent, and education and property taxes are about 5% We have to wait to age 67 to get old age pension.