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New research shows that it is the top 10 per cent of earners who are really hoovering up the tax concessions.

Mercer and the Australian Institute of Superannuation Trustees have modelled the total support through the tax system for superannuation across a lifetime.

It includes the tax concessions on superannuation contributions and on investment earnings and also includes the support through the age pension.

It shows the level of support across different income levels.

Those on incomes in the top one per cent of earners receive superannuation tax concessions over their lifetime of about $630,000.

Those with income putting them just on the border of the top 10 per cent receive almost $500,000 in support.

These higher earners are not receiving any age pension. The support comes purely from the tax breaks on contributions to super and on investment earnings in super.

Those on the lowest incomes receive support of about $400,000. Most of that comes from the age pension.

Those in middle-income bands, which covers the majority of people, receive about $300,000 in support.

Interestingly, those on the border of the top 20 per cent are receiving roughly the same level of support as those on middle incomes.

There is a caveat on the research. They are projections. They make a number of assumptions. They assume, for instance, that the superannuation guarantee will remain as currently legislated.

Nevertheless, the research indicates it really is the top 10 per cent and not the top 20 per cent, as commonly believed, who are benefiting  from government support for retirement incomes.

The tax concessions are to encourage people to save for a comfortable retirement and to reduce reliance on the age pension.

It is not clear what taxpayers are getting in return for providing tax concessions to the well off. Those with big super balances are never going to be receiving the age pension.

There are now about 12,000 self-managed superannuation funds with more than $5 million in them. Most funds of that size will be in pension phase with no tax paid on the savings.

The very well off argue that they have already paid a lot in taxes over their lifetime.

But they have benefited much more than ordinary wage earners from tax breaks during their working lives on top of the generous tax concessions on super.

There is negative gearing – when the costs of making an investment are more than the income from the investment, then the loss can be used to reduce income tax on other income.

Then there is the capital gain tax concession where, if the investment is held for more than 12 months, tax is paid on only 50 per cent of the capital gain.

Then there are the family trusts favoured by farmers and small business owners. Income from the farm or the business can be paid to those in the family on lower marginal income tax rates.

These are legitimate tax breaks that are open to everyone but massively favour those in a position to take advantage of them.