Petty complaints do the financial services industry no favours.

Anyone who started a pension after 1 July 2017 has a transfer balance cap well below $3M. Yes, it's possible that earnings growth net of draw-downs will have taken the pension fund balance above $3M, but this would be rare.

By bipartisan (and, presumably, community) agreement, the TBC is enough to fund a reasonable retirement income, such that there is no need for tax exemption above that balance. Since the TBC will remain below $3M for two or three election cycles, there is plenty of opportunity to review the relationship in future.

Meanwhile, the additional tax will effectively apply to earnings on assets well above the TBC, so the pension draw-down point is a red herring.

Meanwhile, is there a serious financial advisor who thinks that it is OK to hold a single illiquid asset in super with no liquid assets (in or out of super) available to meet expected and unexpected financial commitments? After all, as with Div 293, the additional tax can be paid from non-super money.

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