The changes to the tax settings for contributions are all in the direction of improving the equity outcomes from the distribution of tax concessions.
- The retention of tax concessions for contributions for low income earners, and catch-up contributions for members with broken work patterns, including many women, are particularly welcome.
- Prior to these changes, the distribution of tax concessions for superannuation earnings was heavily skewed to members with large superannuation balances, particularly those in pension phase. The announced changes go a significant way to improve the equity of these concessions.
- The draw down phase of superannuation remains the big unfinished element of Australia's system, which is otherwise recognised as a leading system round the world.