Australian Pensions: An Equitable Solution in a Postcrisis World?

The taxation structure for pensions is relatively complicated, but in broad terms most members of defined contribution funds are taxed concessionally (at a reduced and flat rate) in regard to contributions and investment earnings. Benefits, both lump sum and in income stream form, are tax free when received at age 60 and over. Thus, with T rep resenting taxed, t representing concessionally taxed, and E representing exempt from tax, this system can be characterized as ttE. By comparison, the U.S. tax arrangement for most types of pensions is EET. Despite the regular changes that governments have made for fiscal or