The results of a recent survey of Australian workers sends a clear message to the Federal Government that Australian workers would like to see a reduction in the level of tax on superannuation savings.
In the survey conducted by ANOP Research Services, 75% of employees indicated a willingness to trade off a moderate tax cut to remove the Government's Contributions tax.
This controversial tax is levied at the rate of 15% on all employer superannuation contributions.
Tasplan General Manager Neil Cassidy believes the Federal Government should at least reduce the rate of the Contributions tax to make it more attractive for Australians to save for their retirement.
According to Cassidy, there remains sections of the community who are yet to view superannuation as a retirement solution. These Australians are unlikely to embrace super until there is a more compelling financial case showing that a comfortable retirement is within the reach of most Australians.
"Canberra recently commissioned a Parliamentary Inquiry into how to improve the savings of Australians under 40", Cassidy said. "In our view, the simplest way to encourage more young Australians to commit to superannuation as a retirement solution is to make super a more attractive proposition - by reducing the level of the Contributions tax."
Cassidy believes that it is time that the superannuation industry took a more pro-active stance on this issue and set about convincing Government to tax super in a way which is more consistent with its own retirement and incomes policy.
"The Government should look beyond short term election spending and use its massive surplus to firmly establish superannuation as a major long term goal of all Australians."