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".
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
Senator Jane Hume will join the speaker lineup at the inaugural Australian Wealth Management Summit.
New research from ART has found less than a third of women feel their superannuation is in a good position, reiterating the importance of opening up the advice arena to super funds.
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