Calls for older Australians to be given fewer tax concessions

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There are calls for older Australians to be given fewer tax concessions.

The Grattan Institute has found seniors pay a billion dollars less than young workers on the same income.

Only half of seniors pay tax, due to a low income rebate and the senior Australians tax offset.

"Our argument is that seniors who are in a position to pay for it, should pay their share of taxes, as generations of seniors did before them," John Daley from the institute told Ross and John.

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Economist Richard Denniss told Neil Mitchell tax breaks for voluntary superannuation contributions unfairly disadvantage the young and low-income earners.

"People working on minimum wage, paying rent, bringing up kids, they don't make a lot of voluntary contributions," he said.

"Older people, earning $200,000 a year, paid off the home, kids have left home, they make quite substantial tax-concessional contributions.

"If we want to help young people or low-income people save for their retirement, you probably couldn't come up with a worse scheme."

Mr Denniss said tax breaks to incentivise super contributions don't make sense.

"You don't need to encourage people to do something that's compulsory," he said.

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