Henry warns of tax jump ‘by stealth’ in not indexing $3m super cap

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Henry warns of tax jump ‘by stealth’ in not indexing $3m super cap
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The former Treasury boss also said that he believed the recommendations he made for reforming tax in the super system in his 2010 review were the best option.

His comments came as part of a presentation onand “not fit for purpose”, calling for a wide-reaching overhaul instead of “incrementalist” reforms that failed to address budgetary and economic challenges.

These included halving the tax on all income and gains of super funds to 7.5 per cent, in contrast to the Albanese government’s proposal to double the tax paid on earnings in balances over $3 million to 30 per cent.But Dr Henry’s proposal would apply to all superannuation accounts, not just those in the accumulation phase as Labor’s current policy would do.

“So the cost of those concessions is going to increase very rapidly, [and it] should be removed. What is the reason to have it? The only reason for having it is history, so it should be abolished, it’s complete nonsense.”

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