Most of you, including some long-standing friends, are not going to like this article. I can only appeal to your patriotism and the fact that I doubt if any government would have the guts to do it that will allow you to forgive me for suggesting it. Nevertheless, I do. Remember, it’s only money.
Regardless of how well or otherwise the federal government runs this country, we are in troubled times and the government needs money. There is one source that, I believe, it needs to tap into which will be both popular with most people but also fair – overly-generous public service, statutory body and parliamentary pensions.
I suggest that all defined benefit pensions payable from the public purse to anyone in Australia on such schemes continue to be paid as usual to all persons receiving a pension of up to $100,000 annually. This will mean that most teachers, nurses, bus drivers and lower-to-middle ranking public servants will not be affected. After that, from $100,001 to $150,000, anything over $100,000 be taxed at 60 cents in the dollar. For pensions of $150,001 to $200,000, anything over $150,000 be taxed at 75 cents in the dollar, and for anything over $200,000, the tax should be 90 cents in the dollar. As some current recipients had only one partner working, a single pension where the spouse/partner doesn’t have one can be up to $200,000.
The federal government has power to alter tax rates. Tony Abbott did this in 2014 with the two per cent ‘temporary deficit levy’ for people earning over $300,000 a year.
All uniformed personnel would be exempt from my scheme. If you are in the ADF and wear the uniform of your country, you deserve every benefit you get. Similarly with the brave men and women of our various police forces; and an argument could be made for fire brigade and ambulance officers, too.
Since about 2005, defined benefit schemes have been discontinued for new entrants. Our country can’t afford it. When the CSS started, most senior public servants were the sole breadwinners and supported their partners, only got the pension at 65, and tended to die before 80 years of age.
It’s not a valid argument to say, ‘look, we worked hard for it, we deserve it’. Current public servants under 35 who will rise to the top of the tree also work hard but don’t have the luxury of such a generous scheme. It effectively amounts, in many instances, to taxpayer-funded estate planning.
The blow could be softened by asking the victims of my scheme how they would like the money they are giving up to be spent. I suggest they be given two simple choices: increased defence expenditure or the NDIS, as these will be the two big ticket areas for increased expenditure in the years to come.
Over to you Anthony Albanese and Adam Bandt.
Editor’s note: The opinions expressed in this column are those of the author and do not necessarily reflect those of Canberra Daily.
