When it comes to the tax system, fortunes favour the old

There is growing concern that Australia’s tax and transfer system disproportionately benefits older, wealthier retirees while placing a rising burden on younger workers.

Analysis from the Actuaries Institute shows that two Australians earning the same gross income can end up with vastly different net incomes purely because of their age.

That is, a 30‑year‑old earning $100,000 receives a net income of $85,700, whereas a 71‑year‑old earning $100,000 can receive a net income of $128,100, a difference of $42,400.