The budget super change that helps the wealthy at the expense of the young



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If your’re wealthy you’ll be able to put more money into super without even working.
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Brendan Coates, Grattan Institute

Another federal budget, and yet more tinkering to superannuation tax breaks. But the latest changes will only help older wealthier Australians. The losers are younger workers and taxpayers.

What’s the plan?

From July 1 2020, Australians aged 65 and 66 will be able to make voluntary pre- and post-tax superannuation contributions without having to pass the Work Test, under which they are required to work a minimum of 40 hours over a 30-day period.

About 55,000 Australians aged 65 and 66 will benefit from these changes at a cost of A$75 million over the next four years.

It’s another boost for tax planning

Treasurer Josh Frydenberg says the changes will help Australians save for their retirement.

But most 65- and 66-year-olds still working to top up their superannuation are already eligible to make voluntary super contributions, because they satisfy the Work Test. Working 40 hours over a 30-day period – or little more than one day each week – is hardly onerous.

For every dollar contributed to super that genuinely helps Australians save more for their retirement as a result of these changes, there will be many more dollars funnelled into super to make extra use of superannuation tax concessions.

The biggest winners will be wealthier retired 65- and 66-year-olds with other sources of income, such as from shares or property, which they will now be able to recycle through superannuation.




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They will be able to put up to $25,000 into super from their pre-tax income and then – because super withdrawals are tax-free – take the money back out immediately. Their contributions to super are taxed at only 15%, whereas ordinary dividends or bank interest is taxed at their marginal tax rate. The tax savings can be as high as $5,000 a year.

Such strategies aren’t costless: other taxpayers must pay more, or accept fewer services, to make up the difference.

It will mean larger inheritances

The government is also allowing 65- and 66-year-olds to make three years’ worth of post-tax super contributions, or up to $300,000, in a single year.

These changes will mainly boost inheritances.

Most people who make after-tax contributions already have large super balances and typically contribute from existing pools of savings to minimise their tax.

Grattan Institute’s 2016 report, A Better Super System, found that only about 1% of taxpayers have total super account balances of more than $1 million, yet this tiny cohort makes almost one-third of all post-tax contributions.

These changes will turbo-charge so-called “recontribution strategies” that minimise the tax paid on superannuation fund balances passed on as inheritances. When inherited, super fund balances originally funded by pre-tax contributions can be taxed at 17% (including the Medicare levy), depending on the age of the deceased and the beneficiary.

To avoid this tax on their estate, individuals can withdraw superannuation funds tax-free and contribute them back as a post-tax contribution, up to the annual post-tax contributions cap of $100,000 each year.

It fails the government’s own test

In 2016, the government tried – but failed – to define the purpose of superannuation as providing “income in retirement to supplement or substitute the Age Pension”.

The proposed objective rightly implied that super should not aim to provide limitless support for savings that increase retirement incomes.

The benefits of super changes should always be balanced against the costs of achieving them. The government’s latest changes fail that test.




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The Conversation


Brendan Coates, Fellow, Grattan Institute

This article is republished from The Conversation under a Creative Commons license. Read the original article.

INDONESIA: CHRISTIANS CALL FOR REJECTION OF SHARIA-INSPIRED BILLS


Church leaders fear legislation will lead to religious intolerance; church, orphanage opposed.

JAKARTA, August 19 (Compass Direct News) – The Indonesian Council of Churches (PGI) has called for the rejection of two bills inspired by sharia (Islamic law).

The Halal Product Guarantee Bill and the Zakat Obligatory Alms Management Bill, both under consideration in the Indonesian parliament, cater to the needs of one religious group at the expense of others, violating Indonesia’s policy of pancasila or religious tolerance, said the Rev. Dr. A.A. Yewangoe, director of the PGI.

“National laws must be impartial and inclusive,” Yewangoe told Compass. “Since all laws are binding on all of the Indonesian people, they must be objective. Otherwise discrimination will result … The state has a duty to guard the rights of all its citizens, including freedom of religion.”

Dr. Lodewijk Gultom, head of PGI’s Law and Human Rights Department, pointed out that according to regulations on the formation of proposed laws, a bill cannot discriminate against any group of citizens. But the Halal product bill several times mentions sharia, as if Indonesia were an exclusively Muslim state, he said.

“If this bill is enforced, it will cause other religions to demand specific rights, and our sense of unity and common destiny will be lost,” Gultom said.

Gultom also said the bills were an attempt to resurrect the Jakarta Charter, a statement incorporated into Indonesia’s constitution in 1945 before it was quickly withdrawn. It declared that the newly-created state would be based on a belief in the one supreme God “with the obligation to live according to Islamic law for Muslims.”

Public opinion on the Jakarta Charter remains sharply divided, with some insisting that Islamic law is warranted because of the country’s Muslim majority, while others believe its implementation would disturb national unity.

Two members of Parliament, Constant Pongawa and Tiurlan Hutagaol, both from the Prosperous Peace Party, have requested the withdrawal of the Halal and Zakat bills to avoid creating conflict between Muslims and other religious groups.

“These bills are a step backward and will lead to the isolation of different religions,” agreed Ronald Naibaho, head of the North Sumatran chapter of the Indonesian Christian Youth Movement.

National church leaders have requested a meeting with President Susilo Bambang Yudhoyono to discuss the impact of these bills and a number of other discriminatory laws being applied at provincial levels across the country.

Church, Orphanage Closed

Muslim groups, meantime, recently moved to close more Christian institutions.

On July 21, following complaints from community groups, police forcibly dismantled a church in West Java on grounds that it did not have a building permit, while similar groups in East Java successfully lobbied for the closure of a Catholic orphanage claiming that it planned to “Christianize” local children.

Police in Bogor district, West Java, dismantled the temporary bamboo structure erected by the Huria Kristen Batak Protestan church in Parung Panjang on July 21. Church leaders insist that the church had long ago applied for a building permit that was not granted even though they had met all requirements, including obtaining permission from the Bogor Interfaith Harmony Forum.

“There are 234 buildings in Parung Panjang that lack building permits, including a mosque,” church elder Walman Nainggolan told Compass. “Why was our house of worship singled out?”

The church has filed a complaint with the National Human Rights Commission of Indonesia. Commissioner Johny Nelson Simanjuntak agreed to clarify the status of the church building permit with local officials and asked local police to permit peaceful worship as guaranteed by the constitution.

Separately, a group of Muslims lobbied for the closure of a Catholic orphanage for crippled children in Batu, in the Malang district of East Java, stating concern that the facility would become a covert vehicle for “Christianization.” In response to demonstrations in front of the mayor’s office in October 2008 and June 2009 and complaints from 10 different Muslim religious and community organizations, Batu Mayor Eddy Rumpoko on June 19 rescinded a building permit issued to the Catholic Bhakti Luhur Foundation and ordered that construction cease immediately.

The foundation operates 41 orphanages serving approximately 700 children with special needs.

“We are greatly saddened by this action,” the Rev. Laurentius Heru Susanto, a local vicar, told Compass. “The home was meant to serve the people. There was no other purpose.”

Report from Compass Direct News 

MALAYSIA: COURT SET TO RULE ON USE OF ‘ALLAH’ AMONG NON-MUSLIMS


Judges to determine whether Malaysians of other faiths can use the Arabic word.

MUMBAI, India, July 6 (Compass direct News) – With the Kuala Lumpur High Court in Malaysia scheduled to determine the legality of the word “Allah” in non-Muslim literature tomorrow, what is at stake goes beyond the sanctioned name for God among non-Muslims in the majority-Muslim nation.

Such a limit on free speech in Malaysia is especially biting for Muslim converts to Christianity; already the Malaysian government does not recognize their conversions and marriages and still considers their offspring to be legally Muslim. With non-Muslims increasingly feeling the sting of discrimination and Muslim elites feeling a need to assert a national Islamic identity, the skirmish over “Allah” is clearly part of a greater cultural war.

Malaysian authorities and Malaysia’s Roman Catholic Church have continued to lock horns over use of the word “Allah” in the Malay-language edition of the Herald, the church’s newspaper, as they await the ruling. The newspaper had been allowed to use the term until a final court decision, but the Kuala Lumpur High Court on May 30 overturned that brief reprieve.

The Catholic newspaper has provided a panoply of historical uses of “Allah” among Christians in Malaysia. The Rev. Lawrence Andrew, editor of the Herald, quotes examples from a Malay-Latin dictionary dated 1631, and the Dutch-Malay Dictionary of 1650 lists “Allah” as the vernacular translation for God.

“This is testified by the fact that we have a Malay-Latin Dictionary printed in 1631, in which the word ‘Allah’ is cited,” Andrew said. “To have a word in a dictionary means that that particular word has already been in use in the community prior to the dictionary. The word for ‘God’ in Latin is ‘Deus’ and in Malay, it is ‘Allah.’ Upon the arrival of the Dutch…a Dutch-Malay Dictionary was produced in 1650 where the word for ‘God’ in Dutch was ‘Godt,’ and in Malay, ‘Allah.’”

According to church sources, the Malay term for “God,” Tuhan, came into vogue only after deadly May 13, 1969 communal riots as part of a national unity campaign.

Andrew noted that “Allah” is an Arabic term derived from the same roots as the Hebrew Elohim, and that the word pre-dates Muhammad, Islam’s prophet. Besides ignoring history, Andrew says, the government also conveniently ignores its universal use among Christians in the Middle East.

“Since the status quo remains, we will not use the word ‘Allah’ in our publication” until the court says otherwise, Andrew said. “In fact we have not been using it since our January edition.”

Since 1970, the government of Malaysia has consistently championed Islam as a parallel source of identity and nationalism among the politically dominant Malay-Muslim majority. Dress codes, cultural norms and the Malay language underwent a rapid Islamization in tandem with discriminative actions against minority groups.

Christians were particularly hard-hit by the effort in the name of national unity. Licences are rarely issued for church buildings in the capital city, Kuala Lumpur. New evangelical congregations had to meet at either hotels or warehouses for their Sunday services while Islamic semiotics and terminologies swamped the intellectual and official discourse. Conversion of Christians to Islam were particularly trumpeted by the media.

These efforts have largely failed. Local churches continued to grow, and the number of secret Muslim converts to Christianity began to rise.

At the same time, pandemic corruption and political authoritarianism have gradually led to a sense of disenchantment with political Islam among many. This erosion in Malay-Islam dominance has led to political bankruptcy, as evidenced by disastrous results for the ruling coalition during March 2008 general elections.

Given these political realities, Malay elites believe they can ill afford to be seen as soft on minority “encroachment,” and observers say this need to ingratiate Islamists lies at the root of the tussle over non-Muslim use of the word “Allah.” Officially, however, the government says only that use of the word among non-Muslims could create “confusion” among Muslims.

The Herald has a circulation of 13,000 and an estimated readership of 50,000. The newspaper is sold in Catholic churches and is not available from newsstands.

Malaysia’s population is about 60 percent Muslim, 19 percent Buddhist and 9 percent Christian. About 6 percent are Hindu, with 2.6 percent of the population adhering to Confucianism, Taoism and other traditional Chinese religions.

Arabicization of Malay Language

The debate over “Allah” follows an effort by the government to promote the Arabicization of the Malay language at the expense of Sanskrit and Malay terms. When a Malaysian student has to refer to a pig in an essay or test, the required term is the Arabic khinzir.

Other Malay terms such as pokok (tree) and bunga (flower), long used to refer to loan principal and interest respectively, have been expunged from school texts in favor of the Arabic kaedah (base) and faedah (benefit).

Some sources indicate that the Arabicization of the Malay language, however, has come with unintended consequences, such as making Christian mission work and translation easier. Since the Malay vocabulary has its limitations, Christians can use time-tested Arabic-derived terms to provide meaningful context.

For a long time, the only Malay Bible available in Malaysia was the Indonesian “Al Kitab,” which, included the word “Allah.” As Bahasa Malaysia (official name of the Malay language in Malaysia) and Bahasa Indonesia are very similar, the “Al Kitab” can be easily understood by a native speaker of Malay. As a result, the “Al Kitab” was viewed as an unwelcome missionary tool by Malaysian authorities. Its legal status was heatedly contested behind closed doors during the 1981-2003 reign of then-Prime Minister Mahathir bin Mohamad.

Significant Christian indigenous populations in East Malaysia use Bahasa Malaysia as a language of wider communication. The Malay-language content of the Herald reportedly serves just that need: using the national language with universal terms across a multi-lingual Babel of tribal Catholic communities in East Malaysia.

Report from Compass Direct News 

BURMA: AUTHORITIES CLAMP DOWN ON CHRISTIANS


Churches ordered to cease services, stop meeting in ‘unauthorized’ venues.

DUBLIN, January 21 (Compass Direct News) – Burmese authorities last week increased restrictions on Christian activity in the capital city of Rangoon and surrounding areas, including the closure of several churches, Compass sources confirmed yesterday.

Orders issued on Jan. 5 had already forced many Christians meeting in residential homes or apartments to cease gathering for worship. Officials last week ordered several major Rangoon churches, including Wather Hope Church, Emmanuel Church and the Assemblies of God Church, to cease holding services and continued enforcing the Jan. 5 ban on meetings held in unauthorized facilities.

In the late 1990s authorities stopped issuing permits for land purchase or the construction of new churches, leading many Burmese Christians to conduct services in rented apartments or office buildings, according to the Burmese news agency Mizzima.

The Kyauktada Township Peace and Development Council on Jan. 5 invited pastors from more than 100 Rangoon churches to a meeting where they were told to sign documents pledging to cease operation of their churches. About 50 pastors attended, according to Mizzima.

The documents threatened punishment, including potential jail terms and the sealing of church facilities, for pastors who refused to obey the closure orders.

Another local online news source, the Democratic Voice of Burma, claimed officials from the Ministry of Religious Affairs had summoned the owners of buildings where churches met and ordered them not to rent their properties to religious groups.

Mizzima quoted an unnamed Burmese Christian who claimed that 80 percent of churches in Rangoon were affected by the order.

 

History of Religious Repression

Some local Christians and international observers say the crackdown is related to Christian involvement in relief efforts for the victims of Cyclone Nargis, which hit Burma in May 2008.

Despite widespread devastation and loss of life, Burma’s reclusive government initially banned foreign aid but finally accepted it on condition that Burmese officials would distribute it. Christians, however, had responded immediately to the crisis, gathering relief supplies and transporting them to the Irrawaddy Delta region. Police or army officials stopped some groups, but many were allowed to proceed. At least one such group told Compass that officials likely feared the conversion of Buddhists who accepted aid from Christians.

The military junta ruling Burma promotes Buddhism at the expense of other minority religions, according to Paul A. Marshall’s 2008 Religious Freedom in the World. The country’s population is 82 percent Buddhist, 9 percent Christian and 4 percent Muslim, with traditional ethnic, Chinese and Hindu religions accounting for the rest.

The church closure orders may simply be an extension of Burma’s existing religious policies, which elevate Buddhism in an effort to solidify national identity. Burma ranks high on lists of religious and human rights violators at several watch organizations, including the U.S. State Department, Human Rights Watch, Freedom House and Open Doors.

Documents declaring the government’s intention to “stamp out” Christianity have circulated for some time. Rights organization Christian Solidarity Worldwide drew attention to one such document in a 2007 report entitled, “Carrying the Cross: The military regime’s campaign of restriction, discrimination and persecution against Christians in Burma.” The report summarized a 17-point document allegedly produced by an organization affiliated with the Ministry of Religious Affairs entitled, “Program to Destroy the Christian Religion in Burma.”

The first point in this document declared that, “There shall be no home where the Christian religion is practiced.”

A military dictatorship has ruled Burma since 1962. Following the takeover, the government renamed Burma as the Union of Myanmar and the capital city as Yangon, but many news agencies and government bodies continue to use the original names. When elections were held in 1988, with the opposing National League for Democracy clearly in the majority, the generals rejected the popular vote and used brute military force to cement their power throughout Burma. A similar show of force met hundreds of Buddhist monks who initiated mass anti-government protest rallies on the streets of Rangoon in September 2007.

While almost all Burmese citizens suffer under the regime, Christians are often singled out for specific attack or repression because of their perceived connections with the West.

Reports from various mission groups suggest Christianity is flourishing under the regime, but believers must be creative with their worship – particularly in rural areas. In reports confirmed by Compass, Christians in one state began photocopying Bibles to overcome restrictions on religious publications. Others baptized new Christians during the annual water festival, where citizens douse each other with buckets of water, ceremonially washing away the “sins” of the past year.

 

Heightened Security, Control

Rangoon residents say a much heavier security presence has been evident in the city since early January, when political activists began distributing anti-government leaflets, The Irrawaddy newspaper reported on Jan. 13. The leaflet drops may have contributed to the current crackdown on church gatherings, as generals suspect all organized groups of having a political agenda.

At a graduation of military students in Rangoon on Jan. 9, Vice-Senior Gen. Maung Aye, who is commander-in-chief of the army and deputy commander-in-chief of Defense Services, warned students to steadfastly uphold the country’s “Three Main National Causes” to prevent “recurrences of past bitter experiences.” The causes were listed as non-disintegration of the Union of Myanmar, non-disintegration of national solidarity and perpetuation of sovereignty.

The New Light of Myanmar, a government newspaper, reported the general as saying that, “You will have learned bitter lessons from a number of world events, in which certain States have become weaker … owing to external intervention in their conflicts.”  

Report from Compass Direct News

PAKISTAN: SISTERS ABDUCTED, FORCED TO CONVERT TO ISLAM


Repeatedly raped, minor and 18-year-old now face societal rejection.

ISTANBUL, January 19 (Compass Direct News) – The ordeal of two teenage Christian sisters in Pakistan is over after Muslims allegedly abducted and raped them and forced them to convert to Islam, but they fear a future of societal rejection.

Parvisha Masih, 18, and Sanam Masih, 14, said three Muslim men kidnapped them last November, raping them several times during two weeks of captivity.

“We are happy to return to the family, but we are feeling ashamed because there is no respect for us in society now,” Parvisha Masih said. “We don’t want to go back to school and have to face our friends.”

They face a long legal battle that will inevitably bring them into contact with their captors – who have already assaulted their family in court.

“We feel very afraid, and we are still receiving threats,” Parvisha Masih told Compass. “We are worried about our family and about ourselves. I don’t ever want to see those men again.”

On Jan. 2 the sisters recorded statements concerning their alleged abduction, rape and forced conversion to Islam before a local magistrate in Gujranwala. Earlier, they gave statements in Karachi, where they had been taken by their captors some 840 miles to the south. Two First Incident Reports (FIRs) have been filed.

In Gujranwala, Muhammad Irfan, Muhammed Mehboob and Muhammed Rafique, Mehboob’s brother-in-law, are charged with kidnapping.

 

Kidnapped

Irfan and Mehboob, suspected of involvement in a human trafficking ring, at first made contact with Parvisha Masih accidentally.

“Parvisha received a wrong number call and talked to Muhammad Irfan,” said Katherine Karamat, an investigative officer for the Center for Legal Aid Assistance and Settlement (CLAAS). “Some days later, Irfan called again and told her that he had a beauty salon, and if she wanted training he could arrange that for her.”

Eager to earn extra money for the family, Masih convinced her younger sister Sanam to join her in accepting the offer, according to CLAAS.

Irfan arranged to drive them to their first day of work in his car. At 10 a.m. on Nov. 12, Irfan and Mehboob picked the sisters up from their home.

“This is a common practice now,” said Michael Javaid, a Pakistani member of parliament based in Karachi. “They offer poor people from the villages a good job, and the parents are poor so they trust them, but then they bring these girls and sell them to other people.”

According to the sisters’ testimony, Irfan stopped the car after roughly half an hour to buy beverages. He offered them both a bottle of fruit juice that they drank, unaware that he had drugged it.

En route to Karachi, Irfan and Mehboob then drove the sisters to a motel in Mianwali, threatening them at gunpoint and telling them they would be killed if they tried to escape. The sisters reported that the men then raped them.

In the morning they were ushered back into the car and driven to the coastal city of Karachi, where they were held captive at Rafique’s house. Over the next five days, they said, the men raped them repeatedly.

Masih and Sanam then were taken to a madrassa (Islamic school), where a mufti issued certificates stating that the two had become Muslims. Parvisha Masih was renamed Sana, and her sister received the name Tayyaba.

Javaid and lawyers from CLAAS challenged these certificates, asserting that the sisters did not sign them.

“Anyone can get these papers by giving some kind of a bribe; [clerics] feel it is a service to Islam,” said Javaid. “They will issue a certificate without knowing the will of the person, whether this is a forcible conversion or not.”

Following their forced conversion at the madrassa, the Muslims took the sisters to the office of lawyers Nayer Zia-Ul-Din and Kokab Sahab-Ul-Din. Irfan explained to the lawyers that the sisters had converted to Islam and did not wish to return home to their Christian family, but instead wanted to stay at the government-run Dar-Ul-Aman shelter for women. Before leaving, Irfan told Masih and Sanam that they would be freed after the lawyers brought them to court the following day.

The lawyers told the sisters to sign blank sheets of paper, forging testimony from the pair that they planned to use to support their case, according to CLAAS. The attorneys told the sisters that they could stay with their family that night and took Masih and Sanam to their home, but no other family members were present.

After the sisters had fallen asleep, according to CLAAS, Sahab-Ul-Din took Parvisha Masih into a separate room and sexually abused her. Police found medication in Sahab-Ul-Din’s apartment indicating that the sisters were again drugged. Sanam said she woke up when she heard her older sister crying for help.

“I took the mobile of the lawyer and called 15 [the emergency police number in Pakistan],” she told Compass. “One lawyer had left; the other was with Parvisha.” She was able to escape the house and describe her location to authorities.

Police arrived at the scene shortly afterward, immediately referring Parvisha Masih to a hospital and arresting Sahab-Ul-Din, whom they took to the Ferozabad police station. The other lawyer, Zia-Ul-Din, had left but was later arrested at his home.

At the police station, Sanam called her father, Arif Masih, who rushed to Karachi to bring his daughters back home.

 

Assaulted in Court

The following day (Nov. 22), the sisters appeared before a magistrate to give testimony, accompanied by their father and other relatives. Defendants Zia-Ul-Din and Sahab-Ul-Din, both charged with rape, were also present. Upon learning that the sisters’ father was in the room, they located him and began to attack him.

“The magistrate was in his chambers, and so the lawyers attacked the father and relatives, beating them, even the women, there in the courtroom, which never happened before!” said Javaid. “All the police were called, the FHO [court police], the superintendant and deputy superintendant, and they took them to the lock-up for safety.”

Javaid said he plans to take a strong contingent of associates when they next appear in court to protect the sisters and deter another attack.

This is the second known case of its kind in recent months. Saba and Aneela Masih underwent a similar ordeal last July, and although 10-year-old Aneela has been returned to her family, her 13-year-old sister, forced to marry one of the men who kidnapped her, remains with her captors.

Christian girls from poor families make easy targets, and many cases go undocumented, Javaid told Compass. High legal fees often make it impossible for poor families to bring a case to court. Corrupt lawyers, easily swayed by bribes, often create further expense.

On top of this, a biased legal system that favors Muslims over Christians is particularly reluctant to pass judgments that would undermine conversion to Islam.

“Because both [Parvisha and Sanam Masih] are Christian and the accused were Muslim, to save their skin they made [the sisters] embrace Islam forcefully so they can marry them maybe or whatever they want,” said CLAAS lawyer Samson Joseph.

Report from Compass Direct News