Federal Treasurer Jim Chalmers opens door to winding back superannuation tax breaks

Federal Treasurer Jim Chalmers says winding back tax breaks on super wouldn’t be a broken election promise.

Federal Treasurer Jim Chalmers has left the door open to winding back superannuation tax breaks in the upcoming budget saying the growing costs are a “concern”.

But the nation’s treasurer rejected claims any changes to the system would be a broken promise, despite last year saying Labor would “maintain” the system.

“We’re not proposing and not contemplating major changes to the system,” Mr Chalmers told 3AW on Wednesday.

“I should be able to say here is one of the areas where there’s a lot of pressure on the budget, these tax concessions, and to say it’s of concern to us.

Treasurer Jim Chalmers says changing super rules wouldn’t be a broken election promise. Picture: Gary Ramage

“The cost of maintaining some of these concessions is going to grow a lot, and we need to make sure we’re getting value for money for that.”

Mr Chalmers said the average super account held about $150,000 and less than 1 per cent of Australians boasted a balance of more than $3m.

“The country should have a conversation about whether concessional tax treatment on balances that big is the best use of the taxpayer money,” he said.

Mr Chalmers tax concessions around super would soon cost more than the age pension.

He said it would not be about targeting the rich but ensuring the system was affordable as the federal budget faces increased pressures.

Mr Chalmers said he was not considering changes to negative gearing, or the $1.9m tax-free pension cap ahead of the May budget.

But he and Finance Minister Katy Gallagher would continue investigating where they could trim spending, as the government faces a trillion dollars in debt and soaring costs in Medicare and aged care.

Prime Minister Anthony Albanese reiterated that it was appropriate to look at the cost the concessions were having on the budget.

“We said that we would not have any major changes in superannuation, and that is certainly our intention,” he said at the National Press Club on Wednesday.

“But we’ll receive the review and the report into superannuation.

“There’s nothing that impacts the sustainability of the system from punters out there who have $150,000 in their accounts.”

Originally published as Federal Treasurer Jim Chalmers opens door to winding back superannuation tax breaks