It took just over a week for the federal government to go from floating an idea about an objective for superannuation to announcing an increase in tax on the earnings of super funds that have account balances of more than $3 million.  

At the Conexus Financial Political Series breakfast on February 20, treasurer Jim Chalmers released the government’s draft wording on an objective for superannuation.  

That objective included references to the equity and sustainability of the system, and the debate shifted swiftly to the tax concessions afforded to superannuation funds – primarily self-managed superannuation funds – with “excessive” balances. 

Just eight days later, Chalmers and minister for financial services Stephen Jones announced “people with balances above $3 million will receive less generous tax breaks”. 

But despite the apparent haste, new research suggests public support for the move is strong. 

Support for tax

A survey of 6830 Australians aged 18 and over conducted by CoreData Research on March 2 found around two-thirds of Australians support the government’s move to target account balances above $3 million.  

Moreover, eight in 10 (80 per cent) respondents think the superannuation tax proposal is an effective way to tax the wealthy.