The Australian government must make radical changes to superannuation to deal with future budget shortfalls in defence, aged care, and the National Disability Insurance Scheme. A move Prime Minister Anthony Albanese has refused to commit to.
Grattan Institute Economic Policy Program Director Brendan Coates says superannuation tax breaks cost the federal budget $45 billion (US$29.9 billion) a year, which is around two percent of the country’s GDP, and will soon exceed the cost of the aged pension, according to a new report (pdf).
He said the system had become a “tax-funded inheritance scheme,” with one-third of all superannuation withdrawals not being for bequests….