The Financial Planning Association (FPA) wants to encourage young people to boost their superannuation savings, and is encouraging the Government to modify the tax treatment of non-super tax incentives.

FPA representatives appeared last week before an inquiry by the House of Representatives Standing Committee on Economics, Finance and Public Administration, which is investigating how to improve the super savings of people under the age of 40.

The FPA believes the “reasonable benefits limits” system acts as a disincentive for super savings.

In its submission, the association said the Government “should be seeking to encourage additional savings within a simpler superannuation system and the reasonable benefits limits system places a limit on the concessionally taxed amount of superannuation that a person can enjoy”.

CEO Kerrie Kelly says making financial planners’ fees tax-deductible would encourage super saving.

“The tax deductibility of financial planning fees will not only encourage people to plan for their retirement earlier, but it will also create a level playing field for the taxation treatment of remuneration,” she said.