![]() NCA NewsWire / Martin Ollman Credit: News Corp Australia Camera Icon The government wants a legislated objective of super. “The average among that group is $5.8m and they have access to a whole bunch of tax concessions … the point we’re making is we’ve got to work out where we get the most value for money when it comes to some of these concessions,” he said. One idea being floated is removing tax concessions for super balances over $3m, while another proposal is to lower the cap on concessional super contributions.ĭr Chalmers said the average balance of super was about $150,000 and less than 1 per cent of people in the system had balances higher than $3m. “When you believe in super and there’s an important role for these tax concessions, you need to make sure that you can afford them against all of the other pressures on the budget,” he said.Ībout two-thirds of the $50bn in annual concessions go to the top 20 per cent of income earners. Picture NCA NewsWire / Aaron Francis Credit: News Corp AustraliaĪfter being asked multiple times, Dr Chalmers finally conceded the government had not yet determined if there would be any change to super tax concessions in the May budget. Camera Icon Treasurer Jim Chalmers says he wants there to be a national conversation about the sustainability of the superannuation system. The concessions are now costing the budget more each year than the aged pension. Super tax breaks were first introduced as a way of encouraging workers to save super rather than rely on the pension. “I don’t think it’s especially controversial to acknowledge that, and when you believe in superannuation and its capacity to deliver a dignified retirement for people, then you need to make sure that these kinds of tax concessions are sustainable and affordable into the future.” “As part of what I acknowledged earlier in the week, these concessions in the superannuation system are not cheap,” he told ABC Radio. NCA NewsWire / Martin Ollman Credit: News Corp Australiaĭr Chalmers said the government hadn’t changed its position, but the budget needed balancing and now was the right time for a “national conversation”. “One of the reasons we have this cycle of mad-cap ideas is we haven’t … (got) a legislated objective.”Ĭamera Icon Former prime minister Scott Morrison and his treasurer Josh Frydenberg gave Australians early access to their super during the early days of the Covid-19 pandemic. ![]() ![]() “Every 10 years we get a cycle of ideas about things we could use people’s superannuation savings for that have got nothing to do with retirement income,” Mr Jons he told ABC News. ![]() NCA NewsWire / Gary Ramage Credit: News Corp Australiaįinancial Services Minister Stephen Jones said defining the purpose of superannuation was critical in avoiding future “disastrous decisions”, such as allowing millions of Australians access to $36bn of retirement savings early.ĭr Chalmers and Mr Jones have said the former government’s Covid-19 policy of early access to their retirement income was bad governance and would be felt “in the decades to come”. ![]() Camera Icon Anthony Albanese has again promised no major changes to super in his first address of the year to the National Press Club. The opposition has attacked the goverment, saying it’s going back on commitments it made in the lead-up to last May’s election that it would not make any changes to the system. Treasurer Jim Chalmers on Monday announced an intention to define the objective of superannuation, which when adopted would ensure all future policies were measured by the same yardstick.īut the government has said in starting the debate on the future of superannuation, there is also a need to assess the tax breaks on super. ![]()
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