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Changes in the Taxation of Superannuation:Macroeconomic and Welfare Effects

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Author Info
John Creedy
Ross Guest

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Abstract

This paper provides an applied general equilibrium analysis of several alternative taxation regimes applying to superannuation. It is motivated by the decision, announced by the Australian Government in its 2006 Budget, to exempt from tax all superannuation benefits received by recipients over 60 years of age. The analysis focuses on the implications of this and other superannuation tax regimes for intergenerational equity, national living standards, labour supply, saving and social welfare. The method of analysis is simulation of an open economy overlapping generations CGE model, calibrated to Australia. Acknowledgements The authors wish to thank the Australian Research Council for financial support for this work; and the Productivity Commission for providing data on age-specific government spending.

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File URL: http://www.economics.unimelb.edu.au/SITE/research/workingpapers/wp07/986.pdf
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Publisher Info
Paper provided by The University of Melbourne in its series Department of Economics - Working Papers Series with number 986.

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Length: 27 pages
Date of creation: 2007
Date of revision:
Handle: RePEc:mlb:wpaper:986

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Find related papers by JEL classification:
H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
E21 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

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  1. Whitehouse, Edward, 1999. "The tax treatment of funded pensions," MPRA Paper 14173, University Library of Munich, Germany. [Downloadable!]
  2. Productivity Commission, 2005. "Economic Implications of an Ageing Australia," Labor and Demography 0506001, EconWPA. [Downloadable!]
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This page was last updated on 2009-11-3.


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