An article on the website SMSF Adviser argues that the income tax slab for employees above the age of 65 does not encourage them to work. On the contrary, it persuades them to leave employment and draw from their Super.
In a way it is awkward that you are not taxed for earning $100,000 if you are retired but have to pay a tax for the same if you are working. Taxpayers Australia feels that in regards to the senior population, it might be a good idea to offer a 15% deduction on taxes payable on salary. This may imply an effective 4% on the first bracket of tax and 17% on the secondary bracket.
You can read the original article here.
