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Just days out from the Government making public its response to the Henry Review into Taxation, a new survey has served as a reminder that most Australians will not have adequate incomes in retirement.
The Deloitte survey of senior financial services conducted over the past month revealed that 90 per cent of respondents believed retirement incomes would be inadequate despite Australia’s compulsory superannuation regime.
The survey found strong support for increasing the superannuation guarantee as the most logical method of addressing the retirement incomes shortfall, with many also supporting a reduction in the tax rates applying to super.
Commenting on the survey results, Deloitte Super Tax partner Noelle Kelleher said it appeared there would be a general acceptance of an increase in the compulsory superannuation contribution, with the most popular solution for the Government to increase the maximum superannuation guarantee rate from the current 9 per cent on a sliding scale according to age.
She said almost 62 per cent of survey respondents favoured a compulsory contribution rate scaled up based on the employee’s age, with this option being followed by a desire to see tax on superannuation reduced.
The Deloitte survey also found strong support for lifting the current superannuation contribution caps.
