Pressure mounts to limit super concessions
Australia's largest industry superannuation fund, Australian Super, has thrown its weight behind calls for the tax system to be changed to specifically exclude the use of superannuation for estate planning purposes.
In a theme which is becoming common across many submissions to the Government's Tax White Paper discussion process, an Australian Super submission said a fair superannuation system was one where taxation concessions provided by all Australians were "not used to advance estate planning by some".
"Consistent with the objectives of the retirement incomes system, concessions to the superannuation system should reasonably be limited so they apply to provide retirement benefits only. In particular, it is desirable for there to be a link between limits on tax exempt retirement income with tax free thresholds outside of superannuation," the submission said.
It said the taxpayer burden to provide concessions to the superannuation system should have some limits applied to it.
"There is a question about the long term taxpayer burden of having an unlimited tax exempt environment for superannuation retirement income for all recipients — the cost of this subsidy has been exacerbated by the commencement of the retirement of baby boomers," the Australian Super submission said.
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