The fairness and sustainability of superannuation tax concessions should be a priority for the upcoming tax review, according to the Australian Institute of Superannuation Trustees (AIST).
In its submission to the government's Re: Think Tax White Paper, AIST said that superannuation tax concessions must be reviewed and subsequently made more equitable.
AIST chief executive Tom Garcia said the current concessions are "heavily weighted" toward high income earners.
“The tax review is the ideal forum to level the playing field of government support for retirement incomes and ensure that the superannuation tax concessions are fairly distributed.
“The cost of government support across our retirement income system – whether through superannuation or the Age Pension – impacts on all taxpayers,” Mr Garcia said.
Mr Garcia reiterated that the tax review needs to “improve fairness, sustainability and public confidence in our retirement incomes system”.
Mr Garcia had previously criticised the equity of the current superannuation tax concessions – stating that the system cannot be used as a tool of tax avoidance.
AIST included other recommendations in its submission.
The industry body suggested the implementation of an accepted benchmark of what is an adequate retirement – in terms of income rather than lump sums.
AIST recommended the development of clear objectives for the superannuation system. These include performance indicators and methodology to review outcomes.