Tax advantages of investment in superannuation - In bad times as well as good

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George Rothman
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Conference Paper 03/1

Paper presented to the Eleventh Colloquium of Superannuation Researchers, University of New South Wales, 7-8 July 2003.

Superannuation in Australia has always been intended as a tax preferred investment where tax concessions are provided to encourage (and increase the level of) saving for retirement and provide an offset to ‘locking up’ superannuation until preservation age . A paper by the author to the 2000 Colloquium (Rothman, 2000) examined in some detail the extent to which superannuation is a tax advantaged (or concessional) investment compared with investing in comparable portfolios outside superannuation. It found that for persons in all tax brackets receiving SG employer contributions only, superannuation is a tax preferred investment over a working lifetime of up to 40 years duration.