At current, earnings from superannuation in the accumulation phase are taxed at a concessional rate of 15%.

Prime Minister Anthony Albanese said the proposal does not change the fundamentals of Australia’s superannuation system.

“99.5% of people with superannuation are unaffected by this reform, with around 80,000 people impacted by this,” Mr Albanese said.

Speaking to Savings.com.au, WLTH Head of Lending Cat Mapusua said supporters of this change may argue that this would help address wealth inequality and generate revenue for the government, while opponents argue that it could discourage people from saving for retirement and have negative economic effects.

“At WLTH, we think this presents an opportunity to engage with Australians about the importance of their super, particularly younger people for whom retirement is a long way away,” Ms Mapusua said.

Full Article: Savings.com.au