The Association of Superannuation Funds of Australia (ASFA) has used its pre-budget submission to urge the federal government to cap super balances at $5 million.
ASFA contends that a balance higher than this is not necessary in order to provide a comfortable lifestyle in retirement. It estimates that imposing a cap on super balances would generate annual budget savings of about $1.5 billion, as the government would forego less revenue via tax concessions. ASFA proposes that people aged 65+ with more than $5 million in super should be required to withdraw the excess funds rather than leave them in an accumulation account.
From The AFR:
