The head of Westpac’s superannuation business has thrown his support behind a reduction in superannuation tax concessions, in a move that will put pressure on the Abbott government.

BT Financial Group CEO Brad Cooper will call for retirees’ investment earnings of more than $150,000 a year to attract the marginal rate of income tax, Fairfax reported on Friday.

Currently retirees pay no tax at all on investment earnings.

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“Super is meant to be used to generate replacement income in retirement,” Fairfax said Mr Cooper will say in a speech on Friday.

“Beyond this, I do not think it’s appropriate for people to use its tax-free status to build incredibly high levels of wealth or serve as a proxy estate planning tool.”

Mr Cooper will also call on the Abbott government to retain the low-income super contribution (LISC), essentially a super tax rebate for people earning less than $37,000 a year.

He will also argue for a rise in the preservation age – that is, the age at which you can access your superannuation.

The not-for-profit side of the super industry – whose members are by and large low and middle-income earners – is in favour of limiting super tax concessions at the top end, and retaining the LISC.

The retail sector, however, has kept quiet on the debate over super tax concessions until now.

Mr Cooper’s call will leave the Abbott government even more isolated on its commitment never to touch super tax concessions.

The fact that BT has come out in favour of it will be a particularly hard blow, given the retail super sector has been a powerful ally of the government on issues such as financial advice and superannuation governance.

Labor and the Greens have both said they would make wealthier retirees pay more tax and keep the LISC in place, though their proposals are much tougher than BT’s.