The Labor Party plans to fight next year's federal election on superannuation, saying the Abbott government's second budget shows tax concessions on super earnings have become the fastest growing tax concessions and they need to be wound back.
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Shadow Treasurer Chris Bowen will say at the National Press Club on Wednesday that only Labor has the courage to deal with the problem and "to do it before an election and seek a mandate to deal with it".
Mr Bowen - who spoke at the Press Club less than a month ago - will say superannuation assets are projected to reach more than 160 per cent of gross domestic product in Australia, up from around 120 per cent today.
Tax-free superannuation assets in the retirement phase will account for roughly 44 per cent of total super assets in 30 years, up from just 30 per cent today, he will say.
"This is exactly why the earnings concession on superannuation is the fastest growing tax concession in the federal budget," Mr Bowen will say.
"That rate of growth dwarfs the increase in the scale of age pension costs. [Treasurer] Joe Hockey's own budget papers show the cost of the concession doubling over just the next four years to more than $30 billion."
Mr Bowen is relying on the 2014 Tax Expenditure Statement to show that super tax concessions are estimated to grow to $50.6 billion in 2018-19, up from $29.7 billion in 2014-15, at an an average annual growth rate of 14.3 per cent.
But the government's recent budget papers show the cost of the aged pension will be $50.4 billion in 2018-19, up from $41.6 billion in 2014-15, at an average annual growth rate of 4.9 per cent.
"The budget papers show the cost of total superannuation tax concessions [earnings and contributions] actually outstripping the cost of the age pension by the end of the forward estimates period," Mr Bowen says.
Mr Bowen will say that this is a challenge for budget sustainability that must be met right now, and that Prime Minister Tony Abbott and Mr Hockey "expect us to believe that super tax concessions are affordable" when they know they are not.
"They've decided to promise to keep the current tax free status of superannuation post-60 because they think there are votes in it," Mr Bowen will say.
"I read that Tony Abbott wants to make superannuation an election issue. Bring it on. Labor is always delighted to fight an election on superannuation, one of our proudest creations."
In the lead-up to last week's budget, Mr Abbott upgraded the Coalition's promise to make "no adverse changes" to superannuation in this term of government to making no changes in the future.
It formed part of the government's plan to differentiate itself from Labor, which it wants to brand as the party of high taxes.
