A proposed crackdown on superannuation raids by Treasurer Jim Chalmers has earned the support of  economists. 

The federal government argues enshrining a definition of superannuation in law is vital to protecting balances against future disastrous policy.

Labor is considering measures to tighten early access to funds and slashing tax breaks for people with large amounts of super.

“From the perspective of somebody who thinks long-term, and from your long-term interest, it is good,” InvestSMART head of strategy Evan Lucas told Sofie Formica.

“The power of compound interest is absolutely clear. Those who wiped their super balances during COVID … means that your retirement savings, … the detriment of it is about 45 per cent.

“It’s incredibly significant and that is why the Treasurer is talking about clamping down on using super for those scenarios.”

Press PLAY below to hear about the huge super fund balances set to attract more tax 

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