There are many reasons to criticise the federal government’s Better Targeted Superannuation Concessions Bill expected to be introduced into parliament before the end of the year. This legislation – imposing a new tax on the earnings of superannuation balances exceeding $3 million – adds red tape, costs and unintended outcomes to an already complex system. The decision not to index the $3 million cap means the tax net will widen inexorably.

Further, the policy does not consider a person’s homeownership status, the combined balances of a couple, or the level of wealth held outside super. It will affect many small business owners and farmers who have invested in their businesses through property acquisitions. It will also have an impact on some who suffer a total and permanent disability event.