Politics Now

Are working-age Australians being ripped off by the tax system? || Insiders: On Background

9 snips
Aug 22, 2025
In this engaging discussion, Aruna Sathenapali, Head of the Grattan Institute, shares insights from the recent Economic Reform Roundtable on Australia’s tax system. She emphasizes the urgent need for tax reform to promote fairness, particularly for working-age Australians facing inequities in income taxation. Aruna critiques the tax-free status for retirees and explores disparities affecting high and low-income earners. The conversation also touches on simplifying complex tax processes and the necessity of a broad public understanding to drive meaningful change.
Ask episode
AI Snips
Chapters
Transcript
Episode notes
INSIGHT

Tax System Leans On Wages

  • Australia relies heavily on wage and salary taxes while granting large concessions on passive income like super and housing returns.
  • This imbalance creates growing groups who pay little income tax despite high retirement-related service costs.
INSIGHT

Retirement Income Concession Is Unsustainable

  • Fully tax-free earnings in the retirement phase are unsustainable as super balances grow across cohorts.
  • Continuing a concession but taxing at a lower rate would rebalance fairness without dismantling retirement incentives.
ADVICE

Introduce A Modest Tax On Super Drawdowns

  • Tax retirement super earnings at a modest rate rather than zero, for example around 15%.
  • Use the accumulation-phase rate to guide a fair drawdown-phase taxation approach.
Get the Snipd Podcast app to discover more snips from this episode
Get the app