First step stopping super being taxpayer-funded inheritance scheme
Both sides of politics agree super shouldn’t be used as a tax minimisation and estate planning by the rich. But it’ll take much more than what the government announced yesterday to turn that aspiration into reality.
Treasurer Jim Chalmers yesterday took the first step towards reining in excessively-generous tax breaks in superannuation.
The government proposes to tax at 30 per cent the earnings on super balances larger than $3 million, from 2025-26. This is expected to raise $2 billion a year for the budget and affect 80,000 Australians, or less than one in every 200 Australians with super.
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Brendan Coates is the economic policy program director at the Grattan Institute.
Joey Moloney is a Senior Associate at Grattan Institute.
