What Labor’s proposed objective for superannuation means:
Preservesavings: End early access to super for home buyers;
Deliverincome: End wealth accumulation via tax-effective bequests;
Dignifiedretirement: Enough to support a ‘high-quality’ living standard; end the gender gap; fix underpayments.
In an Equitable and Sustainable way: Curb generous tax breaks, cap super balances at $5 million; allow funds to invest in ‘nation building’ such as housing and climate change.
Labor’s plan to legislate a purpose for superannuation and deploy the $3.3 trillion in savings for nation building has been criticised by former banker David Murray, who said it is “not the place of the government” to decide investments.
Announcing Labor’s long-awaited draft purpose for super, Treasurer Jim Chalmers warned the $50 billion annual cost of tax breaks for superannuation was not “sustainable” as he said he wanted to “elevate and broaden” the powerful sector’s role in the economy.
Aleks Vickovich leads the Financial Review's coverage of wealth management, specialising in the business and regulation of investment markets, financial advice and superannuation. Email Aleks at aleks.vickovich@afr.com
John Kehoe is economics editor at Parliament House, Canberra. He writes on economics, politics and business. John was Washington correspondent covering Donald Trump’s first election. He joined the Financial Review in 2008 from Treasury. Connect with John on Twitter. Email John at jkehoe@afr.com
