Currently, he added, there are limits on the amount of undeducted contributions that can be made and no limits on the amount of benefits that can be taken on a concessionally taxed basis.

“It is very difficult to contribute sufficient monies under the current system to create a [$10 million-plus] SMSF,” Mr Hallinan said.

“If an individual could contribute the maximum contribution each year for 40 years, the total contributed amount would be $8.2 million ($180,000 plus 85 per cent of $30,000). Obviously there would be earnings to add, but a real return of 2.55 per cent (3 per cent gross less 15 per cent tax), this may produce $14.5 million (present day dollars).

“Realistically, how many people at age 25 could contribute to super $205,500 each year for 40 years?”