A recent survey shows that over 50% of older Australians support the federal government’s controversial proposal to increase taxes on superannuation balances exceeding $3 million.
The plan, aimed at addressing growing concerns about the sustainability of the superannuation system, has stirred debate, with the opposition raising concerns about its impact on high-balance savers. According to the survey conducted by National Seniors Australia, about 57% of seniors back the proposed change.
The new tax, which would increase from 15% to 30% on super balances over $3 million, is expected to affect only 0.5% of superannuation account holders. While the government’s proposal has sparked debate, the survey reveals that a significant portion of the senior population sees it as a step towards ensuring fairness in the system.
The Growing Support for Taxing High Super Balances
The push for a higher tax rate on large superannuation balances stems from concerns about fairness and the long-term sustainability of the system. Misha Schubert, CEO of the Super Members Council, highlighted that the public, especially older Australians, is increasingly in favour of addressing inequality in the system. “There seems to be broad Australian understanding about the importance of equity and sustainability in the super system,” Schubert said.
The proposal has received support not only from seniors but also from the broader public, as it seeks to ensure that wealthier individuals contribute more towards the country’s superannuation fund. Schubert added that this is particularly important in the context of a system that many Australians rely on for their retirement security.
Concerns over Equity and Access
While the survey shows strong support for the tax increase, there are concerns about the equitable distribution of superannuation benefits. The study found that groups such as women, people in poorer health, and those with lower educational attainment had less confidence in the fairness of the system.
These demographics often face barriers to accumulating significant super balances, such as interrupted work histories or limited employment opportunities. The gap in access to superannuation benefits raises questions about the inclusivity of the current system.
For example, one in four respondents expressed support for reforms that would allow earlier access to superannuation funds, pointing to broader dissatisfaction with the current rules. While the tax hike aims to target the wealthiest Australians, it also highlights ongoing debates about the fairness of the superannuation system and its role in retirement planning.
