Morrison taking instructions from the Grattan Institute again

download (22)We know that Morrison and O’Dwyer took their riding instructions on imposing higher taxation on superannuants ( to the tune of an additional $6 billion over the forward estimates) from the taxpayer funded Grattan Institute on whose board the wife of the Prime Minister sits.  (Call me a dumb blonde, but if that ain’t conflict of interest, I’ll go hee.)

Now we have come to expect the Grattan Institute to recommend higher taxes at every opportunity.  But do we expect Morrison and O’Dwyer to take any notice?  (Cats, perhaps you shouldn’t answer this.)

But following on from Grattan’s depiction of older people (hey, Daley is approaching that category) as swine with snouts in the trough, he now wants to go further and eliminate what he regards as unjustified tax breaks for older persons all the time failing to acknowledge the objectives of these tax provisions – encourage older people to stay in the workforce and to retain their private health insurance.

These two outcomes save the government many more billions than they cost, but hey, what would the Grattan Institute know – this is book keeping exercise not economic analysis. Its purpose is political, not about promoting good policy.

Mind you, those who have save very little will not be affected; only those who have worked hard and saved for their retirement will be affected.  That’s what fairness means in the Grattan’s bizarro world.

The most depressing thing is that Morrison wouldn’t reject the advice out of hand, but I guess he doesn’t want to hurt Lucy’s feelings.  But then again Morrison thinks that imposing a 95 per cent tax on the superannuation paid on the behalf of back packers is OK.  Houston: we clearly have a problem.

Treasurer Scott Morrison has left open the door to considering a Grattan Institute proposal to curb or scrap three aged-based tax breaks that cost the budget $1 billion a year.

While he emphasised that the government already has a full program of savings measures it’s pushing hard to win Senate approval for, he didn’t reject the Grattan suggestions out of hand.

The institute on Monday called for government to remove a series of three perks it says are unjustified and flow primarily to people who are well off and over 65 at a time when younger households are carrying an ever-growing burden for budget repair.

With the government already cracking down on so-called middle-class entitlement to help repair the budget, the Grattan proposals are aimed at spreading to load to older Australians by bringing them into line with working-age households on lower incomes.

Asked whether the government would consider the ideas, Mr Morrison said his main focus was on ensuring an existing plan to impose savings on superannuation tax concessions that is currently before the parliament is passed.

“The Grattan Institute have speculated on any number of different types of measures that can be considered,” Mr Morrison told reporters in Canberra on Monday.

“There is no shortage of advice or suggestions provided to the government but our priority at the moment is there is already a fiscal consolidation plan before the parliament.

“It’s important the Parliament deals with that business and that business needs to be dealt with over the next fortnight and indeed in the autumn sittings of next year before we bring down the next budget.”

Fair for all

With the government already crunching working-age households by curbing benefits such as family payments and baby bonuses, the institute argues that keeping similar perks for older but very comfortable “taxed-nots” is patently unfair.

It warns that with the population ageing rapidly, government will need to act fast on curbing these breaks or face a growing block of older voters reluctant to help with budget repair.

The Grattan Institute has identified three measures that it says are particularly egregious examples of needless welfare flowing to categories of older people who are living “far from Struggle Street”.

Introduced over the past 20 years, the three measures that should be curbed or scrapped are the seniors and pensioners tax offset, a higher Medicare levy income threshold and private health insurance rebates set at a higher level than for younger workers.

“Essentially this a generation that is putting less into the tin than previous generations and is now taking a lot more out,” Grattan chief executive John Daley said in an interview.

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29 Responses to Morrison taking instructions from the Grattan Institute again

  1. Senile Old Guy

    How depressingly predictable. All ‘our’ money really belongs to the government and we should all be grateful that they let us keep any of it.

  2. OldOzzie

    Meanwhile Lord Waffles of Wentworth “Lucy” Turdbull’s Grattan Institute, friend of Martin Parkinson, strikes again

    End the age of entitlement: cut tax perks for seniors, says Grattan Institute

    Australia’s tax system has become skewed towards a growing and apparently untouchable group of “taxed nots”: older Australians who pay about $1 billion a year less tax than younger ones with identical incomes, according to a Grattan Institute report.

    The institute wants the private health insurance concession removed and the Senior Australians Tax Offset wound back to a threshold just above the age pension of $27,000 for singles and $42,000 for couples. It says combined the measures will save $1 billion a year, about half as much as this year’s omnibus budget saving .

    And the Liberal Party wonders why it is losing Votes?

    I have some suggestions for the Liberal Party and The Grattan Institute

    – get rid of “Obscene” Judges, Parliamentarian and Public Servants Super Schems – easily over $1 Billion saved.

    – get rid of the ABC and SBS – at least $1.4 Billion, especially given the Pay Rises the ABC awarded itself

    – Get rid The HRC and every useless QANGO

    – Get rid of all “Arts/any Grants” etc

    – get rid of Dept of Education – leave it with the States

    – Get rid of the Dept of Health

    – Decrease the Public Service 25%

    then come back to us with some new Tax Proposals

  3. Indigo

    I second Oldozzie. I bet Daley has never paid 60 c in the marginal dollar in his working life.

  4. Hydra

    “Essentially this a generation that is putting less into the tin than previous generations and is now taking a lot more out,”

    Huh?

  5. Megan

    Really? All the years of tax at the top rate I have already paid counts for nothing? What about the nearly half paying no net tax?

    Old Ozzie is right. Let’s start by getting rid of the Grattan Institute.

  6. Pickles

    I disagree Judith. The term conflict of interest is almost as misunderstood as the term irrelevant. Let me give you an example.

    The interests of Morrison, O’Dwyer, the Turnbull Family and the Grattan Institute are not in conflict. They are in perfect alignment.

    The interests of the rest of us are irrelevant.

  7. Bruce of Newcastle

    Grattan obviously wants cashed up superannuants to migrate to Thailand or NZ.
    Which, if the tax eaters keep extracting feathers, they will.

  8. Pat Warnock

    Mr Daley I’m sure no politician is going to voluntarily put a nail in the coffin.

  9. H B Bear

    I hope this wooly socialist thinking doesn’t tarnish the reputation of the independent Ponds Institute.

  10. Leo G

    “Essentially this a generation that is putting less into the tin than previous generations and is now taking a lot more out,”

    Huh?

    They’re living too long for the comfort of senior public servants.

  11. Rabz

    So the stupid bloody liberals are bashing their constituents (again).

    Must be a day ending in ‘y’.

    One can’t help but despair at the epidemic of stupidity and insanity cursing this country.

  12. Old School Conservative

    OK Judith, I’ll do as you asked.
    You are a dumb blond.
    (Errors and omissions excepted).

  13. Rabz

    They’re living too long for the comfort of senior public servants.

    These geniuses will start advocating “involuntary euthanasia” next.

  14. Up The Workers!

    Perhaps if the Government were to tax professional bloviators like John (I’m alright, Jack!) Daley, C.E.O. of the hypocritical Grattan Institute, and all of its’ wealthy Board Members, together with all Federal and State Parliamentarians, down to the level that they expect Australian O.A.P.’s and superannuants to live on, these clods might have more of an idea what they are talking about.

    If this is typical of the output of the taxpayer-funded “Grattan Institute”, then how long before they come up with a ‘solution’ to the ‘problem’ of elderly Australians, along the lines of Harry Harrison’s story in the 1973 film: “Soylent Green”?

    Our abortion clinics are already going gangbusters (one of the only growth-industries, other than crime, under our various Labor misgovernments). How long before the Grattan Institute and Rich Mal Jellyback of the Laberal Party, suggest doing the same at the opposite end of the age-profile?

  15. Perfidious Albino

    But won’t the same younger people ‘missing out’ (relatively) today, then benefit when they too become the ‘older’ generation, all else being equal?

    Grattan reckons we could save a $1bn pa… or we could just trim the public service wage cost by 0.7% for the same benefit… (I read in The Oz, I think, that the combined wage cost of state and federal public servants is approx. $141 bn).

  16. Mike of Marion

    Copy of my post on the Trump Taxation Policies Thread

    Mike of Marion
    #2214736, posted on November 21, 2016 at 11:54 am
    OldOzzie
    #2214565, posted on November 21, 2016 at 9:14 am

    Tom Sweitzer came on ABC Radio 891 Adelaide this morning and when asked by the SJW announcers, Sweitzer said straight back, “that you can see why Trump won.”

  17. Habib

    How many taxpayer provided ackers does the Grattan Institute hoover up a year? I call conflict of interest.

  18. BM

    “Essentially this a generation that is putting less into the tin than previous generations and is now taking a lot more out,”

    …said the bloke who heads up an organisation founded with $15m of Government funding.

    Please put the $15m back in the tin before you turn off the lights Mr Daley.

  19. Treasurer Scott Morrison has left open the door to considering a Grattan Institute proposal

    Oh FMD.
    When was the last time we read “Labor has left open the door to considering an IPA proposal”?
    Answer – never. Infact they would ban the IPA given half the chance. Witness Doug Cameron’s rant a few months ago about da ebil IPA.
    Yet what do we get with the Libs? They kowtow to a tax payer funded, far-left, Fabian infested “think-tank” that produces utter dross, schoolboy research, is wrong about everything all the time and employs more wrongologists than a clone army of rake dancers using Monty as the source DNA.
    STUPID. FUCKING. LIBERALS.

  20. Up The Workers!

    L.N.P. – LITERALLY NOT PERFORMING!

  21. John Comnenus

    Its either Parkinson’s Public Servant gougers and trough feeders or Public Sector run gougers and trough feeders.

    Lberals to the Left, Labor furhter Left still, Greens and Xenophon so far Left thy are even further Left still.

    Who to vote for?

  22. Muddy

    LNP – Lucratively (for a selective few) Non Productive.

  23. Boambee John

    Perhaps the Grattan Institute could inform us how much revenue the government loses due to the tax exempt status of trade unions?

    And while we are on that subject, is the Grattan Institute tax exempt? Should organisations that engage in political lobbying be tax exempt? Is this “fair”?

    So many wuestions, so few answers.

  24. Garry

    Can’t wait for the next federal election. The worthless Libs and labor are in for a big shock! People who have worked and contributed are sick and tired of seeing the fruits of their efforts transferred to the bludging classes – not just welfare recipients but also to all these wonderful causes espoused by the progressive elite!

  25. John Knee Rotten

    Hmmmmmmmm.

    If only all Goverments since the early to mid 1950s had kept paying into the Fund set up to set aside monies for future Age Pensions, then maybe there would be no need for all of this angst. No, the Government of the day in their financial wisdom raided the fund and added the monies to Consolidated Revenue………….

    Governments can only Spend and not Save.

    Cut the Spending STUPID !!!!!!!!

    JR

  26. RJB

    Whilst my original plan was to plough as much as I could into super in the next few years and aim for a fully self funded retirement, this is no longer viable. The Govts “sustained attack” on pensioners and super is just typical “soft target” robbery that is going to come back to bite them big time. My new plan, in order to maintain a reasonable income in retirement, is to blow 80% of it before age penion age, maintain a cash reserve under the assets limit and therefore qualify for a full age pension which fills the gap completely. Cost to me and my wife …nothing but a good time! Cost to the Govt, about $34k per year until we fall off the perch. So, where Scomo was probably going to claw back about 10k by bastardising super, its now going to cost him 34k. The other obvious bets are that pensioners will no longer consider downsizing the family home because the sale could put them over the assets test and will instead plough money into their home to make it a luxury 5 bedroom castle for two! Keep going Scomo….just remember that a retiree with an ounce of spite is something you are about to learn from and it will be a hard lesson.

  27. motherhubbard'sdog

    The whole approach of the government to taxation reminds me of the bank robber who was asked why he robbed banks: “Because that’s where the money is.” There is no interest in equity, fairness or any of the other trendy buzzwords. It is simply a case of we want money so that we can spread largesse and prove what marvellous fellows we all are, the money is held by superannuants, ergo we need to tax superannuants more.

    Truly disgusting.

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