Speaking to SMSF Adviser, Reece Agland, superannuation products and services manager at Taxpayers Australia, said the “excessively generous” deductions in superannuation available to the wealthy are unsustainable and need to be considered in any genuine tax reform process.
“The government’s promised review of the tax system is the most likely conduit for any changes,” Mr Agland said.
“Although in order to maintain its pre-election promises (to not make adverse changes to superannuation in its first term) the government will most likely put off implementation of any changes until after the next election.”
Mr Agland said Taxpayers Australia believes the super system should encourage all Australians to be self-funded in retirement, not just the wealthy.
“While most of us will need superannuation to provide for our retirement, the wealthy do not. Without it they would still be able to make adequate preparations for their retirement years,” Mr Agland said.
“The question then becomes do they need, and should the system continue to provide them, generous tax concessions. With some studies concluding that 40 per cent of the available tax concessions go to the top 5 per cent of Australians, this is a fair argument.”