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Opposition Leader Bill Shorten is warning that two decisions by the Abbott government will drain Australia's superannuation savings pool of more than $980 billion by 2055, putting pressure on the age pension system in direct opposition to stated policy.
David Murray, the chairman of the Commonwealth Government's financial system inquiry, has also urged the government to think very carefully before allowing first home buyers to dip into their super to pay for their homes, saying it should not use housing affordability as an excuse to change the superannuation system.
"What's the problem we're trying to solve here? Are we trying to solve affordability of housing … or are we trying to change the superannuation system?" Mr Murray said.
"To divert money into housing at any stage during the build-up of superannuation savings is not consistent with having a good retirement income system."
On Wednesday, Mr Shorten will warn that the average 25-year-old wage earner will be $100,000 worse off in retirement by the government's decision to freeze the superannuation guarantee rate at 9.5 per cent until July 2021 and to scrap the Low Income Super Contribution (LISC) in 2017.
In a speech at Melbourne's Monash University on the future of education, Mr Shorten will attack the government for making pensioners and superannuation holders poorer in the future.
"Last year, the government froze superannuation for nearly 11 million Australians, twice," Mr Shorten will say in his speech.
"This decision, combined with their unfair raid on the super accounts of 3 million Australians earning less $38,000 a year, will leave our national savings pool $983 billion worse off by 2055.
"An average income earner, aged 25, will retire with $100,000 less in retirement savings.
"How can the government claim a fair pension is unsustainable while trying to wreck our superannuation system - the single best method for easing pressure on pensions and giving all Australians dignity and security in retirement?"
Mr Shorten's criticism comes after Treasurer Joe Hockey suggested last week that young people should be allowed to use their super to pay for their first home.
Mr Hockey's suggestion was later supported by Prime Minister Tony Abbott, who said it was "a perfectly good and respectable idea".
"I can remember back in the early '90s when I was helping John Hewson to draft the Fightback statement, putting in a suggestion to this effect," Mr Abbott said.
But the government's suggestion that super could be used to pay for homes or job retraining has been criticised by a range of parties, including former prime minister Paul Keating, the Labor Party, sections of the superannuation industry and some economists.
Mr Murray, the former head of the Future Fund, joined their ranks on Tuesday, saying the super system would not work properly if savings could be drawn down early.
"Those of us who put all the work into reporting to the government on the financial system were very clear in our recommendation that this should be a retirement income system to help solve some of the problems that are already there," Mr Murray said.
"It's a good idea to try to get people into homes, particularly younger people, but what's the problem we're trying to solve here?
"I would caution very careful thought about this and consideration of what is the problem."
The LISC is a superannuation policy that aimed to make super more equitable for Australians earnings less than $37,000. It involves a refund of the 15% contributions tax paid by those Australians.
