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Taxpayers Australia has labelled the “excessively generous” deductions in superannuation available to the wealthy as unsustainable.
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Superannuation tax reform 'inevitable'
07 August 2014
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Speaking to AccountantsDaily’s sister publication, SMSF Adviser, Reece Agland, superannuation products and services manager at Taxpayers Australia predicted superannuation taxation reform following the federal review of the tax system.
"The government’s promised review of the tax system is the most likely conduit for any changes,” he said.
“Although in order to maintain its pre-election promises (not to 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.”
The super system should encourage all Australians to be self-funded in retirement, not just the wealthy, says Mr Agland.
“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.”
“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 five per cent of Australians, this is a fair argument,” Mr Agland said.
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