Top 10% of wage earners benefit most from tax breaks

The top 10 per cent of wage earners received almost $500,000 of government support compared with $400,000 received by the bottom 10 per cent over a lifetime, said the Australian Institute of Superannuation Trustees (AIST) following its statement on Monday. 

Through research the advocacy body and consultant firm Mercer also found that those in the top 1 per cent of earners received almost $630,000 of government support. 

AIST said that the Government's tax inquiry would be an opportunity to improve the targeting of tax concessions for those at the top end of the income spectrum. 

The findings found that while the level of government support is reasonably equitable for most wage earners, the top 10 per cent of wage earners benefited most from super tax concessions. 

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Those on lower incomes received a relatively high level of government support in the form of the age pension. 

AIST chief executive Tom Garcia said that body's submission to the tax inquiry would examine the full spectrum of taxes in the accumulation and post-retirement phase. This would include examining the current 15 per cent tax on fund earnings, the 15 per cent contributions tax, and the tax-free status of super in the post retirement phase. 

"We would hope that any changes made will bring simplicity as well as equity to the system," Garcia said.