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‘Who loses most’ is not always the right question

The Grattan Institute’s Brendan Coates and John Daley write in The Conversation (26.5.16) about the federal government’s proposed changes to superannuation regulations. They argue that some recent analysis identifying ‘losers’ from the changes might overstate the case.

‘Any change in taxation invariably raises questions about distribution. Who loses, who wins – and who loses most – will always be an issue. But such analysis should be applied with care, lest it miss the bigger picture.

‘For example, a new report by the National Centre for Social and Economic Modelling (NATSEM) is said to show that women would be the hardest hit by the Government’s super changes. But taking a step back it is clear that the Government’s super changes will overwhelmingly affect rich old men, while better targeting super tax breaks at the objective of superannuation.’

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