Social Services Minister Scott Morrison has doubled down on his plans to make Australian retirees who have accumulated a big super balance to spend their cash, not pass it onto their children.
In an interview with the AFR, Morrison made a point he believes many have forgotten in the current debate about his changes to pension entitlements.
Reacting to analysis which suggests his new wealth test could backfire and see more people on the pension, Morrison said that this “fundamentally misunderstands the role of the pension in the welfare system”.
Rather, Morrison said “the purpose of providing tax incentives to encourage people to build up their super is so they can draw down on it in their retirement, not maintain it as a capital pool to be passed on as an inheritance”.
He’s dead right. What exactly are superannuation balances for if not to provide income in retirement?
But it’s also just another incentive for Boomers to spend the kids’ inheritance.