Of course Superannuation is taxed at a concessional rate. 15% as opposed to upwards of 47% depending on your income.
Many have the opportunity to salary sacrifice gross income into super and only pay 15% tax on those contributions instead of their marginal tax rate, some could even get themselves into a lower tax bracket by doing this.
Earnings are taxed at 15%, again better than marginal tax rates out side of super.
Whilst I am no longer a fan of Superannuation due to the many changes made by government(s) over the years that reduce the ability of me to get my own money, one change they implemented that I do agree with is the $1.6M (indexed) cap on the tax free status. A 5% draw down of a $1.6M balance is $80k a year tax free, more than enough to fund retirement which is the main purpose of Super.
If you have more than $1.6M the amount over is still only taxed at 15%, still better than upwards of 47% outside of super.
