Super tax breaks on balances above $3m to be trimmed - to pay 30pc tax up from 15pc

The Federal Government has announced a much anticipated change to the superannuation system. 

It wants to cap tax concessions on super balances of more than $3 million, a move it says will affect only half-a-percent of the population or around 80,000 people.

The proposed reform could boost the budget coffers by up to $2 billion a year.

But will there be serious political implications for the Labor government, which was elected on a promise it wouldn't change super laws?

Here's the breaking news on The World Today

Earlier - 30 minutes before the big announcement - I was predicting there would be a "softening up" of Australians ahead of any changes.