Australia's superannuation system could get a makeover, with the government cracking down on early access to retirement funds. 

Treasurer Jim Chalmers is proposing further protections for superannuation to safeguard retirement savings, after Australians withdrew around $36 billion during the COVID-19 pandemic. 

Dr Chalmers slammed the previous Coalition government's decision to allow early access as a "disastrous policy", but some politicians, like former deputy PM Barnaby Joyce and Opposition frontbencher Dan Tehan, are defending it. 

The Government wants to enshrine a definition of superannuation in law that states: “The objective of super is to preserve savings to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way”.

Independent senator Jacqui Lambie has spoken out, saying that accessing her super had helped her keep her home after 20 years of "fighting government departments". 

Meanwhile, the government is also considering changes to super tax concessions that are used to amass wealth, to make the system fairer. 

An official consultation paper says the government will focus on delivering income to make clear “that the purpose of superannuation is not for minimising tax on wealth accumulation or enabling retirees to leave tax-effective bequests”.

The Association of Superannuation Funds of Australia welcomed the proposed changes, with CEO Martin Fahy saying the proposed objective placed preservation, retirement income, equity, sustainability and a dignified retirement at the heart of superannuation policy.