Former Labor frontbencher Kristina Keneally says Australia’s $3.5 trillion superannuation system has become a taxpayer-funded inheritance scheme and the rules should be overhauled to allow account holders to leave money directly to charities.

Casting doubt on the Albanese government’s promise to double charitable giving in Australia by 2030, the Sydney Children’s Hospital Foundation chief executive said Paul Keating’s vision for the superannuation system was at risk, with tax concessions in place “just to support a new form of private wealth transfer within families”.