The $3 million threshold at which superannuation balances will be hit with additional tax should be indexed to prevent “bracket creep by stealth”, Australian Retirement Trust chief executive Bernard Reilly says.

Mr Reilly told The Australian Financial Review Super & Wealth Summit that the proposal to double tax on earnings in accounts with balances above $3 million to 30 per cent was reasonable, but the threshold should increase over time to account for inflation or wages growth. Otherwise, a growing number of people would be caught by the change.