I was not aware that Howard changed the indexation, but it was Howard who brought in the taxfree super for the high recipients of super, but it was the Hawke-Keating government which introduced compulsory super, and this is the result:
The age pension costs the government $25billion and the tax concessions cost the same; 25billion.
A person who can salary sacrifice the full amount for 30 years, will save more on tax concessions than he/she would get in age pension, living up to 85 or more years.

This are the tax savings for a person who can use the maximum super contributions if under 50 Years of age.
Concessional contribution at 30.June 2010
$25,000 *0.465=$11,625
$25,000*0.15=3,750 Tax saving= $11,625-$3,750=$7,875
$450,000 in super fund
$450,000*.06=$27,000 Interest
$27,000*0.465=$12,555
$27,000*0.15=$4,050 Tax saving $12,555-$4050=$8,505
Total tax saved = $8505+$7875=$16,380 for this year.

If the person is over 50 contribution is as follow.
$50,000*0.465%=$23,250
$50,000*0.15=$7,500 Tax saved= $23,250-$7,500=$15,750
Total Tax saved==$15,750+$8505=$24,255 This is well above the age pension

As the persons super balance can exceed the $500,000 limit for the over 50’s the contribution drops to $25,000, but the person contributes $450,000 non concessional into the fund so that the fund now holds $900,000

$900,000*0.06=$54,000
Tax= $54,000*0.465=$25110
Tax= $54,000*0.15=$8100 Tax saved= $25110-$8,100=$17,010
Total tax saved=$17,010+$7875=$24,885

The tax savings for a person in this position will only increase further as the balance in their fund increases and therefore the income which is taxed at 15%. And when the person reaches the age of 60 and starts drawing down the super, there will be no tax obligation at all. Assume a fund balance of $2million*6% =$120,000 income completely tax-free and this is a very conservative approach by having super balance in a term deposit.

Yet Mr.Shorten is talking about a “sustainable social system” yet he has been challenged by the Australian Taxation Office for breaches of the contribution limit.
As the media always is bleating about the unfairness of the contributions limits, and people like myself are prevented from bringing this unfairness to the attention of the average people, it would be very appropriate to air this matter on your widely watched “four corner program”