Katy Gallagher (ACT, Australian Labor Party, Minister for the Public Service) Share this | Hansard source

I welcome the question on the government's modest change to the superannuation arrangements that we announced last week. Thank you very much for the opportunity. It is important that we explain it. The $3 million threshold strikes the right balance between incentives to save for retirement and strengthening the super system by making it more sustainable over time. The evidence is from the superannuation sector itself. ASFA estimates that, for a comfortable retirement at 67, you need $545,000 if you're a single person and $640,000 if you are a couple. A $3 million balance will be more than sufficient for an adequate retirement for most people for many years to come.

Many parts of the tax system aren't indexed—for example, personal income tax levels. And, as I said, the former government lowered the contribution tax threshold, division 293, without indexation—