“That’s one of the problems – it is very difficult to implement a progressive tax system in what is a flat tax environment,” Mr Middleton said. “It just creates enormous problems.”

With the new government these plans have been shelved, which has been advantageous for SMSF trustees and high income earners, Mr Middleton said.

“There is no value judgement in that because at the end of the day, the superannuation system is probably a bit too generous in many ways,” he said. “The reality is that it will stay generous, which is good for people in that situation.”

Mr Middleton’s comments come after last week’s release of the Middletons Securities Hi Five Investment Report, which provided an economic outlook for 2014.

In the report, Mr Middleton warned investors to avoid government bonds and the “trap” of overinvesting in equities as a result of “artificially low interest rates”.

“The only cloud on the horizon that we can see is slower earnings growth in Australia compared to the rest of the world,” Mr Middleton said.

“Inflation is likely to stay low, interest rates will stay low, international earnings growth should be strong, the value of the dollar should come down and all of those things should be pretty good for investors generally,” he said.