Is super very super?

• Contributions and Income would be tax free until this return reaches a proscribed annual level which is deemed to be a wealth threshold. This will be necessary, otherwise Australia will have millions of citizens who pay no tax, thereby placing an intolerable burden on Young Australians.

• A Wealth Tax on Super Funds whose assets are deemed to be excessive will be necessary. The level at which this is set will constantly be a matter of considerable political controversy. But, it must be set at a high level because a Fund with one million dollars capital is one that is owned by a poor person as it will generate an annual return of less than 50,000 dollars.

• The system will be of such simplicity that accounting, auditing, legal and compliance fees will be minimal.

By the time this edition of Everald@Large hits the computer screens, the Government may have already announced new levels of taxation for Super Funds. Irrespective of what they are, the principles that I have outlined above need to be the basis of a new era of Superannuation.

Now for a peek at the future.

Superannuation only provides the income needed to live on a day-by-day basis. It does not help the nation as a whole cover the heavy and rapidly-growing burden of health and pharmaceutical costs incurred in keeping people alive until most of them are 90. We will need soon to have the courage to require every Young Australian to take out a Compulsory Age Insurance Policy, the cost of which will be deducted from salary. This policy would become operative when they reach 75 and, at this time, will cover all of their heath and pharmaceutical bills instead of these being claimed on Medicare. It will mean also that they will not have to pay for Private Health Insurance once they reach 75. This move will save Australia from bankruptcy, as it will provide for the heavy health costs of the last 15 years of life. Any surplus remaining in the policy will go into a deceased person’s estate, thus providing an incentive to practice preventative health and stay out of hospital.

In the meantime, the economic stability of Australia will depend on encouraging every Senior to stay in the workforce and pay their taxes for as long as possible. This being so, it will be commonplace for people of 80 still to be gainfully employed. It is easily done. This year I will be 82. I am self-employed and enjoying it. I have not yet reached my prime. After all, I am now only the medical equivalent of a 62-year-old who lived a century ago.

I will unreservedly support the Party that makes a pre-election commitment to implement all of the above in the next term of Parliament. I reckon that millions of Seniors will join me.