End tax concessions for 'uber wealthy': super fund boss
Australia's "uber wealthy" are the main beneficiaries of the current tax concessions on superannuation contributions, while leaving younger generations behind, a super fund boss claims.
Good Super, managing director, Andrew MacLeod, said the "continuing generous advantages in super taxation incentives" amounted to "intergenerational theft".
MacLeod called for an end to the current tax concessions after an objective retirement capital level has been met, suggestion that the cut-off point should be set as a function of average weekly earnings (AWE) and interest rates.
"Australia's current AWE is a little under $75,000 and term deposit interest rates are around four per cent," he said.
"To gain $75,000 at four per cent a retiree would need $1.875 million in super."
MacLeod said by adopting that approach, it would remove the argument about what is a reasonable level for tax concessions.
"While tax concessions for young and low income people make sense¬ it makes no sense to give tax concessions to [the] uber wealthy when government tax revenues are as tight as today's," he said.
Adding that the Government needed to ensure that the majority of Australians could enjoy a self-funded retirement without falling back on the Age Pension, which he said was "a safety-net not a comfort-net".
AUTHOR
Nicholas O'Donoghue
Nicholas is a journalist for Money Management and Super Review. Nicholas has several years experience as a journalist, reporting and managing websites for various news publications covering the medical and pharmaceuticals sector.
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