Author Description

Given that retirement incomes are broadly adequate both today and in the future, there is room to reduce tax breaks so that the budgetary cost of the retirement system is more sustainable. Reducing super tax breaks could save the budget more than $4 billion a year. Reducing age-based tax breaks could save another $1 billion a year. Australia's population is ageing. Unless governments have the courage to make these reforms, future budgets will not be able to fund aged care and health at the same level as today, which is the real threat to adequate retirement incomes in future.