Principal at Paramount Wealth Management, Wayne Leggett, believes that instead of concessional contributions being tax deductible, they should be subject to a tax rebate.
“This would immediately negate the disproportionate taxation advantage afforded to higher earners and make the tax benefit of a concessional contribution the same per dollar for every contributor, irrespective of their marginal tax rate,” he told SMSF Adviser’s sister publication InvestorDaily.
Speaking to SMSF Adviser, Mr Leggett said he believes this is one of the few proposals that would legitimately “level the playing field” for superannuation tax concessions.
“It just seems to be common sense that if you have an issue with the fact that you’re giving excessive tax concessions to those that need it the least, then it seems fairly logical that if it wasn’t a deduction but a rebate then it’s not disproportionate, it’s favouring everyone equally,” he said.
Mr Leggett said he will make his local federal MP aware of the proposal.
“I will avail myself of the opportunity to say to him, if there’s anything else being mooted in terms of super, you don’t want any change that is seen as negative. It will just undermine people’s preparedness to contribute to super, and that’s the last thing you need,” Mr Leggett said.