4 Feb 2013

Superannuation tax perks in budget spotlight

7:40 am on 4 February 2013

Early announcement of the date for the federal election in Australia this year has put the focus on budget savings. Superannuation tax perks are in the spotlight.

Voters will go to the polls on 14 September. The unusually early confirmation of the election date on Wednesday has focused attention on policy priorities.

But with little or no fat left in the budget, Radio New Zealand's Sydney correspondent says the economic debate is largely about where money can be saved rather than spent.

In the firing line are generous tax breaks on superannuation, which according to Treasury, cost $A32 billion this financial year.

Many of those concessions are currently targeted at high income earners.

Given those pressures, the federal government is widely expected in the budget in May to end the tax-free status on superannuation withdrawals for people with very high balances.