Wealthy seniors should pay more tax: ACOSS

The nation's peak welfare body wants wealthy retirees to pay more tax.

The Australian Council of Social Services believes too many well-off seniors are using superannuation as a tax avoidance scheme and for succession planning, rather than as a self-sustaining income stream.

In its submission to the government's retirement income review, released on Tuesday, ACOSS calls for the dumping of inequitable and generous tax breaks for the wealthy.

It says high-income earners are reducing their tax rate to 15 per cent, or almost nil, by churning their income and assets through super accounts.

ACOSS wants both the tax rate extended to superannuation fund earnings and the Medicare levy extended to tax-free income.

That would raise more money for health, aged care and social security spending.

"Too much is spent supporting the retirement incomes of a well-off minority," chief Cassandra Goldie said in a statement.