Altering the current shape of Australia's superannuation tax concessions has been identified as a key element in addressing the nation's structural deficit.
Major consultancy, KPMG has issued a report on solving the structural deficit in which its head of wealth management advisory and former senior union official, Paul Howes, claims superannuation tax concession represent "a classic example of how we have gone astray".
He suggested this was principally because their purpose was never defined.
"We now have no choice but to reel them back in," he said
The major recommendations made by KPMG on super include:
KPMG tax partner for superannuation, Damian Ryan said equity had to be a cornerstone of any good tax system.
"We believe our super tax proposals, together with changes to the age pension, will raise nearly $5 billion towards the deficit and meet the test of fairness," he said.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
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