The 106-page report said that “without appropriate targeting, superannuation tax concessions disproportionately benefit Australians with very large TSBs at a significant cost to the federal budget”.

“The committee welcomes that tax concessions will continue for all superannuants to encourage the contribution to superannuation balances to deliver income in retirement,” it said.

The committee added the changes to the legislation are consistent with the original intent of the superannuation system – to provide all Australians with a sustainable and comfortable income in their retirement.

It said “the minimal impact that these changes will have to the majority of superannuants”, citing that the changes would apply to only 80,000, or approximately 0.5 per cent, of all superannuation account holders.

The committee acknowledged the various opinions expressed by inquiry participants regarding the indexation of the $3 million threshold. However, it said that it is "appropriate for the Parliament to be responsible for setting this threshold, which is a common feature of the tax system."

On the taxation of unrealised capital gains, the committee stated it understands views shared by inquiry participants but believes, on the balance of evidence, that the approach taken in the bill is “designed to be applied consistently across all superannuation funds in a sector-neutral way, making it the most appropriate way to reduce compliance burden and costs to funds and their members”.

“The committee also highlights evidence that the taxation of unrealised capital gains is not unknown to the Australian tax system,” it said.

It continued that measures in the bill provide taxpayers 84 days to meet tax liability, considerably longer than the standard 21-day period, and that interest charged on outstanding division 296 tax debts will be lower than the general rate for unpaid debts.

In response to concerns that the taxation of unrealised capital gains may present difficulties for account holders with a high proportion of illiquid assets, the committee said there is evidence that all superannuation trustees have an obligation to keep sufficient liquidity within their account to meet their APRA obligations.