Jim Chalmers opens door to changing superannuation tax concessions

theguardian.com:

The treasurer has opened the door for changes to Australia’s superannuation tax concessions, arguing there needs to be more of a focus on the long-term sustainability of the scheme.

Jim Chalmers said Australia was on track to spend more on super tax concessions than the age pension by 2050, adding he was “not convinced that’s a sustainable way to get to our destination”.

“While our immediate focus is consulting on the objective of super, that can’t be the end of the conversation about super’s sustainable future,” he told a gathering of super and pension fund managers in Sydney.

In the question and answer segment that followed, Chalmers again raised the sustainability of the tax concessions, which allow people to contribute up to $250,000 annually at a reduced concessional tax rate of 15%.

“I think it is important that we recognise if our big task is to make superannuation sustainable, then this kind of conversation shouldn’t be off the table,” he said.

“Our priority on super is getting the objective locked down and dealing with some of these other issues. But it shouldn’t prevent a group like this and the nation beyond thinking about and talking about the sustainability of the system more broadly.”

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Chalmers opened the conversation ahead of the publication of the latest tax expenditure statement, which is due to be published before the end of the month.

A recent analysis by the Australia Institute found super tax concessions would cost the federal budget $52.5bn this financial year, bringing it close to the cost of the aged pension.

The Association of Superannuation Funds of Australia (ASFA) asked the government to consider