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Call to curb MPs' perks

Discussion in 'General Chat' started by bigdog, Sep 11, 2016.

  1. bigdog

    bigdog Retired

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    Jul 19, 2006
    This article is from the September 10 issue of The Herald Sun Digital Edition. To subscribe, visit http://www.heraldsun.com.au/.

    Call to curb MPs’ perks

    POLITICIANS are being urged to cut back some of their own superannuation tax breaks before hitting the retirement savings of millions of ordinary Australians.

    As MPs argue about restricting how much people can put into super, a new analysis by financial strategist the Marinis Financial Group estimates more than $1.5 billion a year could be saved if they remove an “obscene” tax break for retired politicians and other public servants.

    Hundreds of thousands of public servants with defined benefit superannuation schemes, which were closed to new members by the mid-2000 s, were granted a 10 per cent tax offset on their retirement pension income a decade ago even though members paid no tax on their super contributions or fund earnings during their working years.

    “They’re among the most generous schemes in Australia, and probably the world, and they don’t need an extra free kick,” MFG managing director Theo Marinis said. “The pensions they get have never, ever been taxed, anywhere, but politicians want to start clobbering people who have been taxed the whole way.”

    Defined benefit pensions typically pay a percentage of a person’s previous salary for the rest of their life, unlike most Australians’ super, which is a finite amount that drops as it gets spent in retirement.

    Finance commentator Robert Gottliebsen has renewed his call for a parliamentary inquiry.

    “The cost of those defined benefit pensions is rising by $6 billion a year and there is a $400 billion to $600 billion shortfall,” he said. “That increase in costs is conveniently buried and not included in Budget figures.”

  2. Tisme

    Tisme Apathetic at Best

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    Aug 27, 2014
    That scheme irked me from the getgo. Unlike most people those public servants had job security, did nothing to directly value add and were basically deprived of initiative, made to follow set procedures and policy and they were rewarded for servility, for gaining unrelated tertiary qualifications on taxpayer time and money, etc. Of course PS pay was cleverly manouvred by some public servant to be an indice used to determine polly pay, so everyone in the circle of was a winner ...pay for life, investment properties, retired at 55, etc.
  3. moXJO

    moXJO Well-Known Member

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    Aug 15, 2006
    I'm sold.
    Which pollie do I have to bribe to get a job?

    Actually I heard a story doing the rounds. One public servant that was the boss of the main centerlink down here was a well known DKhead. Routinely degrading welfare recipients with foul language and standing over staff members. It wasn't until he got in a punch up with one of his staff that he was dealt with.
    Fired..... No
    They moved him to another office. Apparently you can't get fired from a public service job unless your on the bottom feeding tier.
  4. nioka

    nioka Well-Known Member

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    Jul 15, 2006
    There is a new definition of "public service". It used to be that they were there to serve the public and the public interest. Now it means that the public are there to serve them and their interests.

    I have a nephew that has retired. He was an "assistant to the Premier". Retired at 55. Recently when asked whether he was bored with retirement (he does nothing much more than potter around the house and yard) he said "hell no, I'm busier now than I've ever been". When asked if he was OK financially the reply was that his super paid a full wage equivalent. :furious:

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