Mercer Says Super Tax Breaks Not Generous

Mercer said the super tax breaks given to Australians are not that generous.

The financial consultancy company compared Australia with other countries’ retirement savings systems and said that Australia’s super rules are not too generous.

Mercer senior partner David Knox said the company’s research showed that the after-tax retirement benefits given to Aussies are lower compared to other countries. The research scanned eight countries, which are considered to offer the best pension systems.

An average British worker could have a net retirement benefit of 16.4 percent or some $43,534. The American worker, meanwhile, would get 11 percent or some $29,273. Both retirement benefits are higher compared to the Australian counterpart.

Mercer also said Aussie retirees are worse compared retirees from Switzerland, Canada and the Netherlands. Australian retirees, however, are in a better state than retirees from Sweden and Denmark.

The super tax breaks have been debated on and has since escalated. Tony Abbott has vowed to close down the low-income supers tax concession and is objecting the Labor’s plans to push for the increase of super tax rates.