National discussion should be focusing on encouraging additional superannuation savings, according to Michael Hutton, head of wealth management at HLB Mann Judd Sydney.
“It is a great shame that the constant tinkering with the super regime, and uncertainty created by the government around what superannuation can be used for, only adds to the doubt many people have about whether it is worthwhile to maximise their super contributions,” Mr Hutton said.
“The simple message should be that superannuation remains the most tax-effective and most sound investment vehicle for saving for retirement, and generally speaking, most people should consider making additional contributions at some point in their lives.”
For example, once a salary reaches $80,000 there are significant tax benefits to salary sacrificing additional amounts into superannuation, up to pre-set limits, Mr Hutton said.
“These benefits increase the more a person earns. For example, for a high-income earner with a salary of over $180,000 the tax benefit can be up to 34 per cent for additional amounts contributed to super.”