Mr Field criticised the media’s focus on the issue as “absolute codswallop”.

“One point that has been lost in all the media hype is the fact that the $1.6 million limit is per member, not per fund, meaning an average ‘mum and dad’ joint fund could have $3.2 million in it before this change becomes an issue,” Mr Field said.

“I suspect the number of joint funds with more than $3.2 million in them will not be that high, but even for those in that category, the earnings on the $3.2 million will still be exempt from tax when in pension phase.”

Mr Field said the average size of an SMSF is around $1 million and consists of two members – the average mum and dad super fund.

This means the average individual SMSF balance is around $500,000, a long way short of $1.6 million, according to Mr Field.

He pointed out that it is only the income earned on the excess above the $3.2 million joint fund balance that is taxable, not the earnings when in pension phase, and even then it is only taxable at 15 per cent.

“Even low-income taxpayers earning over $18,200 per annum pay a marginal tax rate of 19 per cent, which is higher than the 15 per cent that someone would pay on a fund balance of over $3.2 million,” Mr Field said.