Policymakers shouldn’t be asking how the superannuation system can better support government spending, or more stringently punish those who seek to take care of themselves.
It should be about how our society can encourage more people to take responsibility for their own lives, maximize every Australian’s retirement income and reduce the cost of welfare.
Once the principle has been established that superannuation taxes can be increased to pay for government spending, that all major parties have voted for it, and that it doesn’t even contradict the objectives of the system, then there will be little to stop future governments.
As future governments continue to struggle to find the money to pay for their own promises, superannuation tax rates will continue to go up and the applicable thresholds will continue to come down.
This flawed approach to superannuation policy, which is also evident in the proposed primary objective, will permanently damage trust and confidence in the superannuation system.