Yes, I agree with your views -its really a superannuation 'bracket creep' type effect, particularly as long as nominal inflation exceeds actual real inflation (which is greater than govt calculated CPI inflation) the long run increase in assets in super will see the $5 mill limit as no big achievement. I think of when I was in primary school, when I could buy a pie with sauce and a small bag of chips for 20 cents, and when it went up to 22 cents I thought it was unaffordable and the world had lost it's balance. To think a pie would ever reach more than $1 let alone $5 was beyond comprehension. I'm sure everyone has there own experiences like this. It's also how the govt inflates away its OS debt by ripping off the middle classes (generally speaking, poor are receiving welfare, rich are hiding money with accounting 'smoke and mirrors', so the middle class get shafted). So holding good assets in super is an effective strategy for income stream generation/protection, but the opportunity will be diminished over time as regulations strangle the benefits, for both good and bad reasons, but none the less, know the facts of how it works to assess it correctly and draw your own conclusions. I have mixed views, but I do understand the issues (reasonable working knowledge) of inflation, bracket creep and compounding etc. its a slippery slope, but well worth doing homework on. Hope it helps.
