Who benefits?

The high cost of super tax concessions
by Minh Ngoc Le

Super tax concessions exacerbate income and gender inequality.

While it is true that the super scheme helps many people save for their retirement, the scheme disproportionately benefits wealthier Australians. Superannuation tax concessions come at a huge cost in foregone revenue that is growing so quickly they will soon become more expensive than the age pension. In coming years, the solution will become worse than the problem.

Reform is needed to ensure these concessions are limited to those who really need them. The income level or super balance at which tax concessions cut out should be lowered. This would lead to significant savings in forgone revenue, reduce inequality, and significantly increase the ability of the Commonwealth Government to properly fund the age pension system.

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