"I read an article in the AFR of a proposal to limit Superannuation Balances to $5M"
The concessional tax treatment of super is designed as an incentive to lead people to save for their retirement instead of relying upon the government pension.Therefore the question is: would an amount above $5M be necessary to achieve that objective? The answer is no. Actually 5M is an amount very much above the amount necessary to eliminate a person from having access to the goverment pension under the assets test. Therefore, even with such limit being imposed It would still be seen as a tax concession to the well off.
