Contributed by Jim Hayes

The move by the Albanese government to lift superannuation tax on those with more than a $3 million payout is a good idea. Don’t listen to the scare mongering coming from the top end of town. Thy pretend that all superannuants will be slugged. This is a lie to protect the most privileged.

This is not to say that there is nothing wrong with Australia’s superannuation industry.  A lot is wrong with it, and one of the problems has been that the rich have been able to manipulate it for their own benefit.

An associated and very real issue is that governments must tax because this is their main source of revenue to pay for the services that benefit us. The question is how fair the taxation system is, and this means whether the burden is shared fairly. Many will suggest that those best sable to afford to pay a bit more without compromising their lifestyle, should expect to do so, so help lift those who have the least capacity.

Superannuation is one area where this principle can be put into practice.

Greens Treasury spokesperson, Nick McKim, put it well when he said “Over time, Australia’s superannuation system has become less about providing a dignified retirement for working people, and more of a vehicle for wealth accumulation. This needs to change.”

Creating a progressive superannuation tax is one way. The Albanese Laor government is doing this with the support of the Greens.

The Coalition argues that it will not support a tax on unrealised gains as an excuse to be spoilers. Unrealised gains are increases in wealth that have not been converted into cash. There are some legitimate concerns. For examples, farmers whose properties inflate in market value but does not increase their real wealth. Exceptions can be made in such cases. Using this as a cover is wrong.

Increasing tax on the top end should be supported, although this is only part of the answer. There must be a fundamental change in the nature of superannuation. It must be moved from control by corporations, which use it as a source of investment capital. Sometimes they have squandered money paid in by their workforce to pay dividends to shareholders. They do this because they can.

Consider that this demographic enjoys a superannuation system that is different from that which everyone; lese haves. a system that allows accumulated returns to stack up on a level no-one else can, generous tax cuts that are their privilege, and opportunities for business and financial restructuring to pay less tax, which the rest of the population has no access to. They have been enjoying a free ride at the expense of the rest of the community. Why shouldn’t they be expected to pay some of it back instead of waging a scare campaign?

It is important to recognise that the multi-billion-dollar industry has a profound effect on the economy and society. This means that a set of social priorities should condition it. Topping the list is that it should serve the majority, and contribute towards creating the kind of society we want to live in. Only then will there be a superannuation system worthwhile having.

The best way to guarantee this is to ensure that is becomes democratic. Superannuants and the comminates to which they belong should have a major say on how the money is used.

Although the Albanese government’s tax proposals remain a long way from revamping superannuation the way it should be, it a least points the way to the need for greater fairness.