Building super on a fair foundation: Reform of the taxation of superannuation contributions
Superannuation is vital to Australia's system of support for retirement. Compulsory super, along with voluntary contributions, enables people to have a much higher standard of living in retirement than possible on the Age Pension alone. Australian governments currently support retirees not only through the Age Pension but indirectly through tax breaks for superannuation. However, the current tax treatment of superannuation benefits high income earners rather than people on lower levels of income. This paper discusses how the current tax system benefits high income earners, and how we could make the tax system more equitable.