Nearly every budget since the introduction of compulsory superannuation in 1992 has included some tinkering of the superannuation rules.
More change is on the way with the Turnbull government to cut some tax breaks for high-income earners when it hands down the budget on May 3.
The government offers an incentive to make salary sacrifice contributions to super, by taxing "concessional" contributions and compulsory super contributions at 15 per cent – lower than the rate of income tax paid by most people.
However, those who earn more than $300,000 a year pay 30 per cent tax on concessional contributions, which is still a saving compared with the highest marginal income tax rate of 45 per cent.
Leaks suggest the Turnbull government will lower the income threshold to $180,000; trumping Labor's plan to set it at $250,000.
The idea is to cut some of the tax breaks going to the better-off to help restore fairness in the super system while also reducing the budget deficit.
In 2013-14, about 380,000 taxpayers earned more than $180,000.
Philip La Greca, an executive at AMP's self-managed super fund business SuperConcepts, says the change would leave the vast majority of workers unaffected.
He says the most important issue for most people is the rate of increase in the superannuation guarantee, which is the compulsory amount employers must pay on behalf of their staff.
"Super is still the primary way that government wants people to save for their retirement and that is unlikely to change," La Greca says.
Most people do not contribute extra to super and rely on the superannuation guarantee.
The Abbott government slowed the rise in the superannuation guarantee, which is 9.5 per cent. It was due to reach 12 per cent by 2019 under the former Labor government's timetable, but the Abbott government postponed it to 2025.
For lower income-earners, the budget could have something to say about the Coalition's stated policy of ceasing the Low Income Superannuation Contribution from July 1, 2017.
Under this scheme, the government pays up to $500 into the super accounts of low earners. The rationale is that millions of workers on low incomes, particularly women, pay more tax on super contributions than they do on their income.
Super contributions for these lower-earners are still taxed at 15 per cent, even though low-income earners may be paying an average rate of income tax of less than 15 per cent.
The superannuation industry has supported Labor in calling for the scheme to be continued.
The budget may include a lowering of the caps on concessional contributions, currently set at $30,000 a year, for those under age 50 and $35,000 for those over 50. The caps include compulsory superannuation, the superannuation guarantee.
And finally, it could lower the caps on the non-concessional contributions, which is where up to $180,000 a year can be put into superannuation without an immediate tax break.
Major budget changes to super since 2012
Turnbull - 2016
Doubling of contributions tax to 30 per cent for those earning more than $180,000 rather than $300,000 now. Could lower the salary sacrifice caps and lower the caps on non-concessional contributions of up to $180,000 a year.
Abbott – 2015
Confirms the low income superannuation contribution will cease from July 1, 2017. Under this scheme, the government pays up to $500 into the super accounts of low earners.
Abbott – 2014
The rise to 12 per cent superannuation guarantee (compulsory super) is delayed and will not reach 12 per cent until July 1, 2022 from July 1, 2019 under Labor. Abbott government subsequently extends the delay to July 1, 2025.
Gillard - 2013
After being lowered the previous year, the salary sacrificing cap for those aged 50 and over at July 1, 2014, is increased to $35,000 a year and to $30,000 for everyone else. The superannuation guarantee charge will rise from 9 per cent of pay to 12 per cent by July 1, 2019.
Gillard - 2012
Doubles super contributions tax of 30 per cent on those earning more than $300,000 a year. Caps, or limits, of how much can be salary sacrificed into super is $25,000 for all ages for the 2012-13 year from $50,000 for people aged over 50 in the 2011-12 year.
