Both political parties have been guilty of fee gouging, which the Productivity Commission noted costs Australians more than $30 billion per year in fees.
Although the former Coalition government brought in an annual test to weed out underperformers, Labor has proposed the introduction of an agreed objective for superannuation to ensure political "buy-in" to make drastic changes to the system.
The current federal government has turned its focus to the purpose of superannuation, proposing that the objective of the savings vehicle is to preserve savings to deliver income for a dignified retirement in an equitable and sustainable way.
Labor, however, argues that the policy of allowing Australians to withdraw up to $20,000 of their super over two years to help with their living costs, which proved to be incredibly popular, was ideologically motivated and problematic because it depleted people's retirement savings. Labor has proposed legislation to counter this practice and to define a clear objective for superannuation.
The government must contend with getting younger Australians to accept that they cannot draw on their retirement savings to buy a home or pay off their student debts, and it is likely that the issue of tax breaks on superannuation will become a major area of contention over the coming months.
