There’s one proposal that has yet to be fully explored, and it would make a whole lot of sense for Australia’s retiring population and bottom line.
The easiest way to make the taxation of super more equitable would be to apply a tax rebate to concessional contributions
Australia’s superannuation regime is the envy of many developed countries around the globe as they collectively struggle to cope with how best to provide for an ageing population.
The generous taxation concessions afforded members of Australia’s superannuation and pension funds (particularly those closer to, or already in, retirement) are world-class and result in superannuation being a self-selecting alternative for retirement savings in Australia.
However, these same tax concessions have recently drawn staunch – and some would argue justifiable – criticism in certain quarters.
By Wayne Leggett, principal, Paramount Wealth Management
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