Mercer senior partner Dr David Knox will unveil the firm’s ‘tax and super plan’ at the Financial Services Council conference this week.
The plan also proposes extending Division 293 tax to all Australians subject to the top marginal tax rate; improving the government low income earners superannuation contributions; and limiting the amount of assets that can exist in the tax-exempt pension phase.
“In our working lives, all Australians should have the opportunity and flexibility to build a more secure retirement when they can afford to contribute,” said Dr Knox.
“Lifetime limits to concessional and non-concessional caps would create a much fairer system; they would secure more adequate retirement incomes for more Australians; and lessen the cost of the age pension to the federal government and tax payers,” he said.
Dr Knox said limits to concessional and non-concessional caps would also allow people who have been in and out of the workforce to catch up in their retirement savings.
“Lifetime concessional contribution caps would provide all Australians with equal opportunity to build their nest egg when they’ve got the financial capacity to do so,” said Dr Knox.
“We need a retirement savings system which encourages individuals to save and compensates them for the lack of access to their savings.”
