The SMSF Association has called for changes to concessional caps to allow Australians to carry forward unused concessional contribution cap amounts and contribute to their superannuation when their circumstances allow.
In its 2016 Budget submission, the SMSF Association urged the Federal Government to end their "use it or lose it" approach to reflect modern work patterns and income streams.
Commenting on the submission, Andrea Slattery, chief executive officer and managing director of the SMSF Association said flexibility is needed to reduce red-tape and stop impeding voluntary contributions to superannuation.
"The current system delivers a poor result for people with volatile incomes - those with broken work patterns, especially women, small business owners or farmers whose income can fluctuate widely. These people may be able to make significant contributions to superannuation in some years but not others," she said.
"Contrary to what many believe, a carry-forward approach is a more equitable and sustainable approach for the superannuation system in preference to a lifetime contribution cap approach.
"A lifetime contribution cap model can be exploited by making large concessional contributions early in life, reaping the long-term benefits from the low-tax superannuation environment for related investment earnings. But under a carry-forward model, contributions are limited by the maximum annual concessional contribution cap.
"Ultimately, making the contribution caps more flexible will ensure that everyone saving for retirement will have ample opportunity to make contributions to superannuation to build adequate savings that can be drawn down later in life," said Slattery.