Tax on super works in 2 tranches, 15% tax on contributions in accumulation phase and 15% tax on the earning that the remaining 85% earns, so in effect there is a reasonable tax take (every year on earnings until pension phase) so taxing drawdowns in retirement pahse would impose an extra tax. When super was set up in 1989 (I was employing people and had to expain to them why they didn't get the full 3% wage rise the Arbitration Commision awarded then) 2.5% went into super ,.5% was take home pay inmcrease, many were not impressed. The tax oncontributions , it seemed , was to be so Treasury didn't miss out on funds then. The 401K system the USA uses would have been a simpler probably smarter way, Keatinmg was treasurer then. Many workers werr very negative about super then, the promise of tax free income in retirement was a carrot.
