Confidence in the retirement savings system has been eroded by the proposal of a new superannuation tax for member balances above $3 million.

The concept of earnings pertaining to the proposed 30 per cent tax for superannuation balances over $3 million is different to assessable income.

The government will seek industry feedback on a legislated objective for superannuation and has put forward its proposed wording.

The government has declared its commitment to have the superannuation system provide for people’s comfortable retirement only.

The possible move by the government to impose a cap on superannuation balances has met with opposition from another industry body.