Jim Chalmers signals cap on super balances to rein in tax concessions for wealthy

That is not far off from what the superannuation peak body, ASFA, suggested in a pre-budget submission to the government, when it recommended tax concessions be reserved for those with less than $5m in their accounts.

While insisting the government has made no decisions, Chalmers has pushed the conversation in the direction of caps for people with large superannuation balances, noting that the average Australian had about $150,000 in their account.

Chalmers has opened the debate over the sustainability of superannuation tax concessions ahead of the release of a new tax expenditure statement in coming days that will quantify the value of a range of concessions, from franking credits to capital gains.

The government is also putting together the May budget, and will have to find billions for new submarines, a pay rise in the aged care sector, a strengthening of the Medicare system, and rebates to lower power bills. The significant call on expenditure means the government has to investigate options on the tax side of the budget.