Mr Morrison suggested the current superannuation system effectively penalises Australians who take breaks from work and attempt to “regather the pace” with their super contributions.
“What we see is the need to have a system which ensures people can be independent in their retirement and not drawing on a pension. That’s why I’ve talked about the need for greater flexibility on the contributions side for people who have disruptions to their working life,” Mr Morrison said in an interview with Sky News.
“I’m not just talking about women. We all know carers in our own lives who, through no fault of their own – through the worst deal of a hand in life’s experience – find themselves caring full time for a partner, a loved one, a child, a parent and it’s very hard for them to catch up. It’s very hard for them to get back and regather the pace,” he said.
Mr Morrison also stressed the government is set on ensuring that superannuation is not a vehicle for intergenerational wealth transfer.
“So, what you’ll hear from us on superannuation is [that it is] a program to help people be independent in their retirement and give them more opportunities to do that and have the tax incentive very focused on achieving that goal. Not to develop inheritance pools or things like this, but to ensure that people can be independent in retirement,” Mr Morrison said.
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More likely to be threshold balance level that is indexed.
Amounts over the “lifetime limit” subject to penalty of some sort – but most likely top marginal tax for withdrawals.
It seems incredulous that raising the GST is touted (with social safety nets) but not the flat super tax.
Surely even cranking it up to 16% (+ safety net) would be a significant tax haul.
Whatever happens, it got to be easy to administer or else all the recent fee reductions will be reversed.
Fingers crossed that we don’t return to RBLs. I am fine with life time contribution limits but RBLs were a nightmare even the ATO staff would not want to revisit.