A recent survey of over 3,000 Australians aged 50 and older has shown that more than half of them support the federal government’s plan to increase taxes on high superannuation balances.
The proposed plan would see taxes on super balances above $3 million rise from 15% to 30%, affecting around 0.5% of savers.
Despite opposition from some quarters, the survey found that 57% of seniors back the change.
A Sense of Fairness
According to Misha Schubert, CEO of the Super Members Council, “there seems to be broad Australian understanding about the importance of equity and sustainability in the super system, and a strong sense of fairness as the starting point.”
The survey results suggest that older Australians recognize the need for a fair and sustainable superannuation system.
Confidence in Fairness Varies
While a significant majority of those surveyed believed the super system was strong and sustainable, fewer thought it was equitable. Women, those with poorer health, and Australians with less formal education had lower levels of confidence in its fairness.
This lack of confidence is likely due to the fact that these demographics often have limited access to the benefits of superannuation due to a lack of employment opportunities or disrupted work histories.
The Importance of Superannuation
Almost universally, older Australians understand the importance of superannuation, with 89.5% believing it must be saved for retirement.
However, one in four respondents supported early release of funds beyond current rules, a move that has been criticized for being “dangerous” and leaving savers worse off in the future.
Criticism of the Coalition’s Housing Plan
The Coalition’s plan to allow first-time home buyers to access up to $50,000 from their super to put down a deposit has been criticized for potentially raising house prices and leaving savers worse off.
“Policy ideas that propose early release are dangerous and they make Australians poorer,” said Schubert.