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 think tank has said. This is despite Prime Minister Anthony Albanese’s refusal to commit to anything of this nature.
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….